The LEA Budget, Schools Budget and Individual Schools Budget (England) Regulations 2003

These Regulations may be cited as the LEA Budget, Schools Budget and Individual Schools Budget (England) Regulations 2003 and shall come into force on 31st December 2003.

These Regulations apply in relation to the financial year beginning on 1st April 2004.

These Regulations apply only in relation to England.

In these Regulations—

expenditure on the provision and maintenance of maintained schools and on the education of pupils registered at maintained schools;

expenditure on the education of pupils at independent schools, non-maintained special schools^f1, pupil referral units, at home and in hospital, and on any other arrangements for the provision of primary and secondary education for pupils otherwise than at schools maintained by a local education authority; and

all other expenditure incurred in connection with the authority’s functions in relation to the provision of primary and secondary education, in so far as such expenditure does not fall within paragraph (a) or (b).

Subject to paragraph (2), the classes or descriptions of local education authority expenditure specified in Schedule 1 are hereby prescribed for the purposes of section 45A(1) of the 1998 Act and the determination of a local education authority’s LEA budget.

The classes or descriptions of local education authority expenditure specified in Schedule 1 shall not include any of the following —

capital expenditure other than CERA;

expenditure for the purposes of section 26 of the Road Traffic Regulation Act 1984^f1 (arrangements for patrolling school crossings); and

expenditure incurred by the local education authority under section 51A of the 1998 Act^f2 (expenditure incurred for community purposes).

the provision of parent partnership services^f1 or other guidance and information to the parents of pupils with special educational needs which, in relation to pupils at a school maintained by the authority, is in addition to the information usually provided by the governing bodies of such schools; or

arrangements made by the authority with a view to avoiding or resolving disagreements with the parents of children with special educational needs.

expenditure incurred in preparing, reviewing and implementing the authority’s education development plan under sections 6 and 7 of the 1998 Act;

expenditure incurred in connection with entering into a contract pursuant to a direction under section 63 of the 2002 Act (contracts to obtain services of an advisory nature in respect of schools with serious weaknesses or schools requiring special measures);

expenditure incurred in connection with the exercise of its functions under sections 14 to 17 of the 1998 Act (powers of intervention, of appointment of additional governors and of suspension of delegated budget in schools causing concern); and

expenditure on the appointment and remuneration of interim executive members under section 16A of the 1998 Act^f1.

management of the authority’s capital programme including preparation and review of an asset management plan and negotiation and management of private finance transactions;

planning and managing the supply of school places, including the authority’s functions—

the authority’s functions in relation to the exclusion of pupils from schools or pupil referral units, excluding the making of any provision of education to such pupils, but including advice to the parents of an excluded pupil;

school organisation committees;

the authority’s functions under section 509 and 509AA to 509AC^f1 of the 1996 Act (home-to-school and home-to-college transport); and

the authority’s functions under sections 510 and 514 of the 1996 Act (provision and administration of clothing grants and boarding grants), and pursuant to regulations made under section 518(1)(c)^f2 of the 1996 Act.

the Chief Education Officer and his personal staff;

planning for the education service as a whole, including expenditure on any single education plan;

functions of the authority under Part I of the Local Government Act 1999^f1 (Best Value) and the provision of advice to assist governing bodies in procuring goods and services with a view to securing continuous improvement in the way the functions of those governing bodies are exercised, having regard to a combination of economy, efficiency and effectiveness;

revenue budget preparation; the preparation of information on income and expenditure relating to education, for incorporation into the authority’s annual statement of accounts; and the external audit of grant claims and returns relating to education;

administration of grants to the authority (including preparation of applications), functions imposed by or under Chapter IV of Part II of the 1998 Act and, where it is the authority’s duty to do so, ensuring payments are made in respect of taxation, national insurance and superannuation contributions;

authorisation and monitoring of—

and all financial administration relating thereto;

expenditure incurred in connection with the authority’s functions under section 27 of the 2002 Act (provision of community facilities by governing bodies);

internal audit and other tasks necessary for the discharge of the authority’s chief finance officer’s responsibilities under section 151 of the Local Government Act 1972^f2;

expenditure incurred in relation to the authority’s functions under regulations made under section 44 of the 2002 Act ^f3;

recruitment, training, continuing professional development, performance management and personnel management of staff who are funded by expenditure not met from schools' budget shares and who are paid for services carried out in relation to those of the authority’s functions and services which are referred to in paragraphs of this Schedule;

investigations which the authority carry out of employees or potential employees of the authority or of governing bodies of schools, or of persons otherwise engaged or to be engaged with or without remuneration to work at or for schools;

functions of the authority in relation to local government superannuation which it is not reasonably practicable for another person to carry out and functions of the authority in relation to the administration of teachers' pensions;

retrospective membership of pension schemes and retrospective elections made in respect of pensions where it would not be appropriate to expect the governing body of a school to meet the cost from the school’s budget share;

advice, in accordance with the authority’s statutory functions, to governing bodies in relation to staff paid, or to be paid, to work at a school, and advice in relation to the management of all such staff collectively at any individual school (“the school workforce”), including in particular advice with reference to alterations in remuneration, conditions of service and the collective composition and organisation of such school workforce;

determination of conditions of service for non-teaching staff and advice to schools on the grading of such staff;

the authority’s functions regarding the appointment or dismissal of employees;

consultation and functions preparatory to consultation with or by governing bodies, pupils and persons employed at schools or their representatives, or with other interested bodies;

compliance with the authority’s duties under the Health and Safety at Work etc. Act 1974 ^f4 and the relevant statutory provisions as defined in section 53(1) of that Act in so far as compliance cannot reasonably be achieved through tasks delegated to the governing bodies of schools; but including expenditure incurred by the authority in monitoring the performance of such tasks by governing bodies and where necessary the giving of advice to them;

the investigation and resolution of complaints;

legal services relating to the statutory functions of the authority;

the preparation and review of plans involving collaboration with other local authority services or with public or voluntary bodies;

the preparation, modification and revision of an early years and childcare development plan for their area under sections 120 and 121 of the 1998 Act^f5 and the provision of (but not the expenditure authorised by) an early years development and childcare partnership under section 119 of the 1998 Act^f6;

provision of information to or at the request of the Crown and the provision of other information which the authority are under a duty to make available;

the authority’s duties under article 4(2) and (5) of the Race Relations Act 1976 (Statutory Duties) Order 2001^f7;

the remittance of fees payable to the General Teaching Council for England by virtue of section 4(4) of the Teaching and Higher Education Act 1998 and the provision of information required by the Council pursuant to regulations^f8 made under section 12 of that Act;

expenditure incurred in connection with the authority’s functions pursuant to regulations made under section 12 of the 2002 Act (supervising authorities of companies formed by governing bodies); and

expenditure incurred in connection with the authority’s functions under the Disability Discrimination Act 1995^f9 in so far as compliance cannot reasonably be achieved through tasks delegated to the governing bodies of schools; but including expenditure incurred by the authority in monitoring the performance of such tasks by governing bodies and where necessary the giving of advice to them.

Where any maintained school in the authority’s area is due to be discontinued and re-open as an Academy in the financial year commencing on 1st April 2004, an amount equal to F x (G/12) shall be deducted from E, where—

• F is the number of months during the financial year beginning on 1st April 2004 in which the school is not to be maintained by the authority, and

• G is the total budget share of that school for the financial year beginning on 1st April 2003 together with the total amount of any funds devolved to the school from the standards fund grant and under the Excellence in Cities or Excellence Clusters programmes.

An amount equal to any sum deducted in accordance with paragraph 24 of Schedule 2 to the 2002 Regulations in respect of expenditure on maintained nursery schools in the financial year beginning on 1st April 2003, shall be added to E. But if any such maintained nursery school will cease to be maintained on or before 31st August 2004 the amount to be added to E shall not include any expenditure on such a school.

paragraphs 1, 2 and 3 of Schedule 3 to these Regulations,

paragraph 25 of Schedule 3 to these Regulations, to the extent that this exceeds expenditure deducted in accordance with paragraph 24 of Schedule 2 to the 2002 Regulations except in respect of maintained nursery schools, and

paragraph 32 of Schedule 3 to these Regulations

Expenditure (other than expenditure incurred in connection with any other paragraph of this Schedule or any paragraph of Schedule 1) which the authority is obliged to incur as a condition of a specific grant paid to the authority and which is taken into account in determining the amount of such specific grant.

Any amount which the authority is obliged to make available as a condition of grant paid under section 14 of the 2002 Act or under section 484 of the 1996 Act and which is taken into account in determining the amount of such grant, decisions regarding the expenditure of which are delegated to the governing body of a maintained school.

a registered pupil at a special school maintained by the authority; or

a registered pupil at a primary or secondary school maintained by the authority who occupies one of a number of places at that school which are recognised by the authority as being reserved for children with special educational needs.

collaboration between special schools and primary and secondary schools to enable children with special educational needs to engage in activities at primary and secondary schools;

the education of children with special educational needs at primary and secondary schools; and

the engagement of children with special educational needs at primary and secondary schools in activities at the school with children who do not have special educational needs (being expenditure that it would be inappropriate to expect to be met from the school’s budget share).

at independent schools or at special schools which are not maintained by a local education authority under section 348 of the 1996 Act; or

at an institution outside England and Wales under section 320 of the 1996 Act.

allocate to each governing body who are an admission authority, as defined in section 88(1) of the 1998 Act, an amount determined by the authority as that reasonably required by the governing body to meet expenditure incurred in connection with the system of admissions of pupils to the school and any appeals, taking into account any factors or criteria in their formula which relate to such arrangements, and

allow the governing body to determine how such amount should be spent for that purpose.

expenditure in respect of meals at any primary or special school which is not a former grant-maintained or grant-maintained special school, unless the governing body have elected to receive funding for meals as part of their school’s budget share;

expenditure in respect of meals at any former grant-maintained primary or special school where the governing body have elected not to receive funding for meals as part of their school’s budget share;

expenditure in respect of milk at any school which is not a former grant-maintained or grant-maintained special school;

expenditure in respect of milk at any former grant-maintained or grant-maintained special school where the provision of that milk attracts a subsidy from the European Union; and

expenditure in respect of milk or meals at any pupil referral unit or any maintained nursery school.

carrying out trade union duties or undergoing training under section 168 of the Trade Union and Labour Relations (Consolidation) Act 1992^f1;

taking part in trade union activities under section 170 of the Trade Union and Labour Relations (Consolidation) Act 1992;

performing public duties under section 50 of the Employment Rights Act 1996^f2;

undertaking jury service;

who are safety representatives under the Safety Representatives and Safety Committee Regulations 1977^f3;

who are representatives of employee safety under the Health and Safety (Consultation with Employees) Regulations 1996^f4;

who are employee representatives for the purposes of Chapter II of Part IV of the Trade Union and Labour Relations (Consolidation) Act 1992 as defined in section 196 of that Act or regulations 10 and 11 of the Transfer of Undertakings (Protection of Employment) Regulations 1981 as defined in regulation 11A of those Regulations^f5;

taking time off for ante-natal care under section 55 of the Employment Rights Act 1996;

undertaking duties as members of the reserve forces as defined in section 1(2) of the Reserve Forces Act 1996^f6;

suspended from working at a school;

who are members of the General Teaching Council for England or a committee thereof; or

who are appointed learning representatives of trade unions, in order for them to analyse training requirements or to provide or promote training opportunities, and to carry out consultative or preparatory work in connection with such functions.

notify the governing body of each school, which does not receive funding for library services in its budget share, of the share of the amount retained by the authority in respect of library services which is attributable to that school; and

allow the governing body to determine whether expenditure retained by the authority in respect of their school is to be spent by the authority in providing library services to the school themselves or in procuring that library services are provided to the school by another local authority.

its size and unexpectedness; or

its size and unavoidability,

Expenditure on allocations to the governing body of a school in financial difficulty provided that the authority —

For the purposes of paragraph (1), a school is in financial difficulty if, in the opinion of the authority, cost pressures at the school for the year in question have resulted or will result in higher expenditure than the resources otherwise available to the governing body.