Clause 33
Education and Inspections Bill
4:00 pm
Jacqui Smith (Minister of State (Schools and 14-19 Learners), Department for Education and Skills; Redditch, Labour)
How pleased I am that the hon. Member for Bognor Regis and Littlehampton is an accountant. However, I must say that he let me off reasonably lightly. As he identified, the clause updates the definition of capital expenditure in respect of voluntary aided schools under the School Standards and Framework Act 1998 so that it is consistent with more recent legislation. The current definition of capital expenditure set out under article 13 of the Regulatory Reform (Voluntary Aided Schools Liabilities and Funding) (England) Order 2000 contains a list of types of expenditure that are to be treated as capital, while the amendment defines capital expenditure as that which would be treated as capital in accordance with proper accounting practices.
The updated definition is in line with modern accounting practice, thus avoiding the need for an exhaustive list under the Bill. The definition also mirrors the approach taken under section 16 of the Local Government Act 2003, which defines capital expenditure when that term is used in relation to a local authority.
The hon. Member for Bognor Regis and Littlehampton is right that the change in definitionwill provide flexibility to help ensure that voluntary aided schools can be procured through optimal arrangements, such as the private finance initiative, when that offers best value for money. It will be especially relevant for new build, voluntary aided schools that are procured through the “building schools for the future” programme. That programme is one that will transform the secondary school estate throughout the country, and we would not want voluntary aided schools to be excluded from it or have any difficulties with it.
The hon. Gentleman raises an important issue about the treatment of insurance, and where insurance payments should come from. In accordance with his invitation, I shall write to him about it, because it is an important issue for the schools involved.