# The School and Early Years Finance (England) Regulations 2025, Regulation 7: Exceptions

Extent: E+W

A local authority’s non-schools education budget or schools budget must not include the following classes or descriptions of expenditure—
(a) capital expenditure, other than—
(i) CERA;
(ii) capital expenditure appropriated to the schools budget for the purpose of funding pay arrears due to staff whose salaries are met from the schools budget;
(b) expenditure on capital financing, other than expenditure incurred—
(i) on prudential borrowing;
(ii) for the purpose of meeting the costs of financing the payment of pay arrears referred to in paragraph (a)(ii); and
(c) expenditure for the purposes of section 26 of the Road Traffic Regulation Act 1984 (arrangements for patrolling school crossings).

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Source: https://www.legislation.gov.uk/uksi/2025/42/regulation/7 (the official version)
Page: https://openlegislation.uk/school-and-early-years-finance-england-regulations-2025/regulation-7
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.