Schedule 4
Education and Inspections Bill
4:30 pm
Jacqui Smith (Minister of State (Schools and 14-19 Learners), Department for Education and Skills; Redditch, Labour)
I beg to move amendment No. 281, in schedule 4, page 135, line 3, at end insert—
‘paragraph 28(2) of Schedule 2 to the Education and Inspections Act 2006 (including that provision as applied by any enactment),'.
Frank Cook (Stockton North, Labour)
With this it will be convenientto discuss Government amendments Nos. 282 to 292 and 297 to 327.
Jacqui Smith (Minister of State (Schools and 14-19 Learners), Department for Education and Skills; Redditch, Labour)
I have done slightly better this time than with the last set of Government amendments.
The amendments add to the provisions inschedule 4, which revises schedule 22 to the School Standards and Framework Act 1998, which protects public investment in school land where it is owned by the governing body, foundation body and trustees of foundation, voluntary and foundation special schools—in simple terms, schools that own their assets. It is essential that public investment in schools should be protected. Local authorities have that responsibility where they own the assets of the school.
There has been some scaremongering to the effect that our encouragement of schools to benefit from owning their assets will mean not only the transfer of those assets from local authority ownership to school ownership, but the risk of permanent loss to the public sector. That is emphatically not the case with our proposals. Schedule 4 provides proper safeguards for publicly funded land held by governing bodies, foundation bodies and trustees of maintained schools. Those safeguards, which we touched on in relation to previous amendments, cover the disposal and transfer of publicly funded non-playing field school land and the situation where schools are discontinued.
Local authorities can object to disposal proposals for such land and to reinvestment proposals for proceeds, and can claim a share of the proceeds. They can also ask for the transfer of publicly funded land, if it is surplus to the school’s needs, for use by another school or in the delivery of children’s services. In all cases in which there is not local agreement, schedule 4 empowers the schools adjudicator to make the determination, having regard to guidance that the Secretary of State issues.
The main purpose of the amendments is to bring publicly funded land held by the trustees of voluntary aided schools within the disposal, transfer and discontinuance provisions of the schedule. Government capital support for voluntary aided schools is paid as capital grant by the Secretary of State under paragraph 5 of schedule 3 to the School Standards and Framework Act 1998. By including land funded in that way in the definition of publicly funded land, we bring voluntary aided schools in line with other schools or trusts that own their own assets.
I emphasise that we are not seeking to sequester in any way the assets of voluntary aided schools or their trustees. The amendments will affect only land that is acquired or enhanced by capital grant from the Secretary of State after 1 April 2007. The measures will not be retrospective: they apply to land in respect of which public money is provided after that date. Further, they require that the Secretary of State give notice within six months of making the grant that these provisions apply. We do not seek to stop schools, trustees or foundations disposing of their own surplus land, or to give local authorities any claim on such land.
We are including voluntary aided schools now because there have been significant changes in capital funding of such schools since schedule 22 was brought into force in 1998. There is much greater Government investment in schools: from less than £700 million in 1996-97 that investment will increase to more than£8 billion by 2010-11. The voluntary aided sector continues to get its fair share of that money. In addition to the huge overall increase in public investment in schools, the proportion of Government investment in voluntary aided schools has increased over the years and, from 2002, was raised to 90 per cent.—in other words, voluntary aided schools must now contribute only 10 per cent. of their building costs. Recently, the Secretary of State decided that, because of the scale and targeting of the “building schools for the future” programme, she would, exceptionally, fund voluntary aided school investment through that programme at 100 per cent. It is important to ensure that that unprecedented public investment in the assets of voluntary schools is recognised and protected. We have had discussions with the Church of England and Roman Catholic bodies representing the interests of the great majority of voluntary schools, and have agreed with them that the changes are right.
Unless hon. Members press me hard on these issues, I do not think that it would be useful to go through in detail the many other, mainly technical amendments. The amendments add further protection for publicly funded school land, and I am therefore pleased to propose them.
Nick Gibb (Shadow Minister (Schools), Education; Bognor Regis and Littlehampton, Conservative)
I want to raise one or two issues relating to some of the Government amendments. On Government amendment No. 311, I heard the Minister talk about the fact that paragraph 5 of schedule 3 to the School Standards and Framework Act 1998 relates to grants made by the Secretary of State to the governing body or the trust of a voluntary aided school. Under new paragraph A30 of schedule 22 of the 1998 Act, which the amendment inserts via schedule 4 of the Bill, the Secretary of State may give notice that expenditure using grants made by the Secretary of State will be included in the definition of publicly funded land. What I cannot understand is why it is necessary to have this in such a detailed schedule—it goes into the detail of every conceivable type of land that is included in the schedule—and why the land transfer procedure for some sorts of land should be determined solely in terms of whether the Secretary of State decides to issue a notice. Will the Minister say why she believes that is necessary and why the power is necessary with all the different methods in the schedule?
Amendments Nos. 298 and 304 exempt land that is acquired by means of a grant under schedule 32 of the 1998 Act by a voluntary school from the definition of publicly funded land under this section. Why do voluntary schools have that exemption and other schools, such as foundation schools, do not? If my understanding is right, can the Minister explain why there is a difference?
Jacqui Smith (Minister of State (Schools and 14-19 Learners), Department for Education and Skills; Redditch, Labour)
I made a specific point in my opening comments about the six months’ notice that is required for the change of regime and the fact that it would not be retrospective. It is also necessary—this relates to the hon. Gentleman’s second point—that we do not automatically capture all the grant payments in the proposals made in the amendments. Some programmes—for example, devolved formula capital—will need to be excluded from the provisions that we are making.
I think that I have answered both of the hon. Gentleman’s questions. If I find subsequently that I have not done so, I will write to him and other members of the Committee to ensure that they are covered.
Amendments made: No. 282, in schedule 4, page 135, line 14, at end insert—
‘(fa) any land acquired, or enhanced in value, wholly or partly by means of any grant made on or after1st April 2007 by the Secretary of State under paragraph 5 of Schedule 3 (including that provision as applied by any enactment) in relation to which notice is given in accordance with paragraph A30,'.
No. 283, in schedule 4, page 135, line 25, leave out ‘7th June 2005' and insert
‘the commencement of this sub-paragraph'.
No. 284, in schedule 4, page 135, line 27, leave out ‘falling within section 21(1)(a)' and insert
‘established otherwise than under this Act'.
No. 285, in schedule 4, page 140, line 46, at end insert—
‘paragraph 5(4B)(d) of this Schedule;'.
No. 286, in schedule 4, page 141, line 9, after ‘2006' insert
‘(including that provision as applied by any enactment)'.
No. 287, in schedule 4, page 141, line 19, after ‘day' insert
‘other than a grant made on or after 1st April 2007 under paragraph 5 of Schedule 3 (including that provision as applied by any enactment),
(ea) any land acquired, or enhanced in value, wholly or partly by means of any grant made on or after1st April 2007 by the Secretary of State under paragraph 5 of Schedule 3 (including that provision as applied by any enactment) in relation to which notice is given in accordance with paragraph A30,'.
No. 288, in schedule 4, page 141, line 32, at end insert—
‘( ) But this paragraph does not apply to any disposal which—
(a) is made by a foundation body after the commencement of this sub-paragraph, and
(b) is a disposal to the trustees of a foundation or foundation special school made on the school leaving the group for which the foundation body acts and becoming a school with a foundation established otherwise than under this Act.'.
No. 289, in schedule 4, page 147, line 20, after ‘2006' insert
‘(including that provision as applied by any enactment)'.
No. 290, in schedule 4, page 147, leave out lines 23 and 24.
No. 291, in schedule 4, page 147, line 39, leave out second ‘or'.
No. 292, in schedule 4, page 147, line 43, at end insert—
‘(j) any land acquired, or enhanced in value, wholly or partly by means of any grant made on or after1st April 2007 by the Secretary of State under paragraph 5 of Schedule 3 (including that provision as applied by any enactment) in relation to which notice is given in accordance with paragraph A30, or
(k) any land acquired, or enhanced in value, wholly or partly with the proceeds of disposal of any land acquired or enhanced in value as mentioned in paragraph (j).'.—[Jacqui Smith.]
Jacqui Smith (Minister of State (Schools and 14-19 Learners), Department for Education and Skills; Redditch, Labour)
I beg to move amendment No. 293, in schedule 4, page 157, line 17, at end insert—
‘( ) In determining whether to make an application under sub-paragraph (1) for a transfer order, a local education authority must have regard, in particular, to any guidance given from time to time by the Secretary of State.'.
Frank Cook (Stockton North, Labour)
With this it will be convenientto discuss the following: Government amendmentNo. 294.
Amendment No. 226, in schedule 4, page 157,line 27, leave out ‘may' and insert ‘shall'.
Government amendment No. 295.
Amendment No. 227, in schedule 4, page 157,line 37, leave out ‘or'.
Amendment No. 228, in schedule 4, page 157,line 42, after ‘2006,', insert ‘or
(iv) is required by the local authority for any other purpose which the local authority may show to the satisfaction of the adjudicator to be in the local community interest,'.
Government amendment No. 296.
Jacqui Smith (Minister of State (Schools and 14-19 Learners), Department for Education and Skills; Redditch, Labour)
An aim of this part of the Bill is to empower a local authority to ask the schools adjudicator to make a transfer order in respect of surplus publicly funded land held by a governing body, foundation body or trustees of a foundation, voluntary or foundation special school when the authority requires the land for another school, for another of its education functions, or for delivering children's services.
Amendments Nos. 293 and 294 make it clear that before asking for such a transfer order, the local authority must have regard to any guidance issued by the Secretary of State. I have provided for hon. Members the illustrative draft guidance, which we have already discussed in part.
We have set out in the Bill the factors that the adjudicator will consider when deciding to make a transfer order. They have been carefully considered to balance a school's ownership of its own assets against the strategic needs and duties of an authority. Amendments No. 295 and 296 describe in some detail the circumstances in which an order may be made. They include when the land is required for another school or educational use or for delivering children’s services, so that the school's land which has been acquired using public expenditure is still used for the benefit of the children and young people of the area. I hope that the Committee will accept those amendments.
I will respond to other amendments in the group if and when they are spoken to.
Nick Gibb (Shadow Minister (Schools), Education; Bognor Regis and Littlehampton, Conservative)
Amendments Nos. 295 and 296, to which the Minister referred, alter the circumstances in which the adjudicator can make the transfer order. At present, there are three purposes for which a local authority can ask for land to be transferred: it is needed by a school maintained or receiving assistance from a local authority; it is needed for the exercise of the educational functions of a local authority; or it is needed for the purposes of any of its education or children’s services or under various sections of the Children Act.
The wording of new sub-paragraph (5A), which the amendment would insert into paragraph A26 of schedule 4, is slightly different from that of the second purpose that I just quoted. It says that the land
“is otherwise required for the purposes of the exercise of any of the functions of the authority”.
In other words, it removes the word “educational” from the current second purpose. The drafting seems to be very broad and vague, and means that the use will not necessarily be limited to the educational functions of the local authority. I should be grateful if the Minister explained why a broader definition is to be included in the schedule.
Jacqui Smith (Minister of State (Schools and 14-19 Learners), Department for Education and Skills; Redditch, Labour)
I hope that I can reassure the hon. Gentleman. The new sub-paragraph is worded in that way without broadening the purposes for which the transfer order would be made because in that case “authority” means local education authority, so all its functions must relate to education. The purposes that I spelled out—that transfer be for the use of education or children’s services—are the confined functions for which we expect transfer orders to be made. We are not allowing the proposal of transfer orders for, for example, the provision of a dustbin depot or any other function of a local authority. I can give the hon. Gentleman that reassurance.
Amendments made: No. 294, in schedule 4, page 157, line 24, at end insert—
‘( ) In relation to the content of such an application, a local education authority must have regard, in particular, to any guidance given from time to time by the Secretary of State.'.
No. 295, in schedule 4, page 157, line 31, leave out from ‘purpose' to end of line 42 and insert
‘is a qualifying purpose, and'.
No. 296, in schedule 4, page 157, line 43, at end insert—
‘(5A) For the purposes of sub-paragraph (5)(c) the stated purpose is a qualifying purpose if it falls within one or more of the following descriptions of purpose—
(a) the land is required for the purposes of any school or institution which is, or is to be, maintained by the authority, or which they have power to assist;
(b) the land is otherwise required for the purposes of the exercise of any of the functions of the authority;
(c) the land is required for the provision of children's services by or on behalf of the local authority who are that authority in the exercise of any of the relevant functions of that local authority.
(5B) For the purposes of sub-paragraph (5A)(c)—
“children's services” are services provided for or in relation to any of the following persons (whether or not they are also provided for or in relation to any other persons)—
(d) children;
(e) persons aged 18 or 19;
(f) persons over the age of 19 who are receiving services under sections 23C to 24D of the Children Act 1989;
(g) persons over the age of 19 but under the age of 25 who have a learning difficulty, within the meaning of section 13 of the Learning and Skills Act 2000, and are receiving services under that Act;
“relevant functions” means the functions described in any of paragraphs (a), (c), (d) or (e) of subsection (1) of section 121 of the Education and Inspections Act 2006.'.
No. 297, in schedule 4, page 158, line 28, at end insert—
‘paragraph 28(2) of Schedule 2 to the Education and Inspections Act 2006 (including that provision as applied by any enactment),'.
No. 298, in schedule 4, page 158, line 41, after ‘Act' insert
‘other than a grant paid under such regulations to the governing body of a voluntary aided school'.
No. 299, in schedule 4, page 158, line 41, at end insert—
‘(fa) land acquired wholly or partly by means of any grant made on or after 1st April 2007 by the Secretary of State under paragraph 5 of Schedule 3 (including that provision as applied by any enactment) in relation to which notice is given in accordance with paragraph A30,'.
No. 300, in schedule 4, page 159, leave out lines 20to 22.
No. 301, in schedule 4, page 159, line 27, at end insert—
‘paragraph 5(4B)(d) of this Schedule;'.
No. 302, in schedule 4, page 159, line 36, after ‘2006' insert
‘(including that provision as applied by any enactment)'.
No. 303, in schedule 4, page 159, line 46, after ‘day' insert
‘other than a grant made on or after 1st April 2007 under paragraph 5 of Schedule 3 (including that provision as applied by any enactment)'.
No. 304, in schedule 4, page 159, line 48, after ‘Act' insert
‘other than a grant paid under such regulations to the governing body of a voluntary aided school'.
No. 305, in schedule 4, page 159, line 48, at end insert—
‘(fa) land acquired wholly or partly by means of any grant made on or after 1st April 2007 by the Secretary of State under paragraph 5 of Schedule 3 (including that provision as applied by any enactment) in relation to which notice is given in accordance with paragraph A30,'.
No. 306, in schedule 4, page 160, line 44, after ‘2006' insert
‘(including that provision as applied by any enactment)'.
No. 307, in schedule 4, page 160, leave out lines 47 and 48.
No. 308, in schedule 4, page 161, line 10, after ‘Act' insert
‘other than a grant paid under such regulations to the governing body of a voluntary aided school'.
No. 309, in schedule 4, page 161, line 10, at end insert—
‘(ga) land acquired wholly or partly by means of any grant made on or after 1st April 2007 by the Secretary of State under paragraph 5 of Schedule 3 (including that provision as applied by any enactment) in relation to which notice is given in accordance with paragraph A30,'.
No. 310, in schedule 4, page 161, line 12, leave out ‘paragraph (f) or (g)' and insert
‘any of paragraphs (f) to (ga)'.
No. 311, in schedule 4, page 162, line 24, at end insert—
A30 (1) Where a grant is made on or after 1st April 2007 by the Secretary of State under paragraph 5 of Schedule 3 (including that provision as applied by any enactment), the Secretary of State may within the relevant period give the body or other persons to whom the grant is made notice that—
(a) any land acquired, or enhanced in value, wholly or partly by means of the grant is land falling within paragraph A1(1)(fa), A8(1)(ea) and A15(1)(j), and
(b) any land acquired wholly or partly by means of the grant is land falling within paragraph A27(1)(fa), A28(1)(fa) and A29(1)(ga).
(2) The “relevant period” means the period of 6 months beginning with the date upon which the grant is made.”.'.
No. 312, in schedule 4, page 163, line 28, leave out from ‘(1)(b)' to end of line 29 and insert ‘—
(a) for “Secretary of State” substitute “appropriate authority”, and
(b) for sub-paragraphs (i) and (ii) substitute—
“(i) under section 19(1) requiring a foundation, voluntary or foundation special school in Wales to be discontinued,
(ii) under section 32(1) requiring a foundation special school in Wales to be discontinued,
(iii) under section 55(1) of the Education and Inspections Act 2006 requiring a foundation, voluntary or foundation special school in England to be discontinued, or
(iv) under section 16(1) of that Act requiring a foundation special school in England to be discontinued.”.'.
No. 313, in schedule 4, page 163, line 34, after ‘A1(1)' insert
‘other than land falling within sub-paragraph (2A)'.
No. 314, in schedule 4, page 163, line 37, at end insert—
‘( ) After sub-paragraph (2) insert—
“(2A) Land falls within this sub-paragraph if it is—
(a) land falling within paragraph (fa) of paragraph A1(1) by virtue of being land enhanced in value as mentioned in that paragraph, or
(b) land falling within paragraph (h) of paragraph A1(1) by virtue of being land acquired, or enhanced in value, wholly or partly with the proceeds of disposal of any land falling within paragraph (a) above.
(2B) If the school is in England and the governing body dispose of any land falling within sub-paragraph (2A) which is held by them for the purposes of the school, paragraph A1 shall apply to them.”.'.
No. 315, in schedule 4, page 164, line 2, after ‘A8(1)' insert
‘other than land falling within sub-paragraph (3A)'.
No. 316, in schedule 4, page 164, line 6, at end insert—
‘( ) After sub-paragraph (3) insert—
“(3A) Land falls within this sub-paragraph if it is—
(a) land falling within paragraph (ea) of paragraph A8(1) by virtue of being land enhanced in value as mentioned in that paragraph, or
(b) land falling within paragraph (g) of paragraph A8(1) by virtue of being land acquired, or enhanced in value, wholly or partly with the proceeds of disposal of any land falling within paragraph (a) above.
(3B) If the school is in England and the foundation body disposes of any land falling within sub-paragraph (3A) which is held by it for the purposes of the schools comprising the group, paragraph A8 shall apply to it.”.'.
No. 317, in schedule 4, page 164, line 18, at end insert—
‘( ) After sub-paragraph (4) insert—
“(4ZA) Where the school is in England, the trustees of the school shall apply to the appropriate authority for it to exercise its powers under sub-paragraph (4B) in relation to any land falling within paragraph A15(1), (2) or (3), other than land falling within sub-paragraph (4ZB), which is held by the trustees for the purposes of the school.
(4ZB) Land falls within this sub-paragraph if it is—
(a) land falling within paragraph (j) of paragraph A15(1) by virtue of being land enhanced in value as mentioned in that paragraph, or
(b) land falling within paragraph (k) of paragraph A15(1) by virtue of being land acquired, or enhanced in value, wholly or partly with the proceeds of disposal of any land falling within paragraph (a) above.”.'.
No. 318, in schedule 4, page 164, line 19, leave out from ‘(4A)' to end of line 26 and insert ‘—
(a) after “Where the school” insert “is in Wales and”, and
(b) for “Secretary of State for him to exercise his” substitute “appropriate authority for it to exercise its”.'.
No. 319, in schedule 4, page 164, line 27, at end insert—
‘( ) after “under sub-paragraph” insert “(4ZA) or”,'.
No. 320, in schedule 4, page 164, line 35, leave out from ‘appropriate;”,' to end of line 37 and insert—
‘( ) in paragraph (b) for the words from “for the purposes of another” to the end substitute “—
(i) in the case of a school in England, for the purposes of another foundation, voluntary or foundation special school, or
(ii) in the case of a school in Wales, for the purposes of another foundation or foundation special school or for the purposes of a voluntary school,
direct the trustees to exercise that power in such manner as the appropriate authority may specify;”,
( ) in paragraph (c) after “sub-paragraph” insert “(4ZA) or, as the case may be,”, and
( ) in paragraphs (c) and (d) for “he”, wherever occurring, substitute “the appropriate authority”.'.
No. 321, in schedule 4, page 164, line 38, after ‘(5)' insert ‘—
(a) after “(3)” insert “, (4ZA)”, and'.
No. 322, in schedule 4, page 164, line 42, leave out from ‘within' to end of line 44 and insert ‘sub-paragraph (4ZB), or'.
No. 323, in schedule 4, page 164, line 47, leave out from ‘paragraph' to end of line 6 on page 165 and insert
‘A15 shall apply to them.”.'.
No. 324, in schedule 4, page 165, line 19, after ‘(1)' insert ‘, (2)'.
No. 325, in schedule 4, page 165, line 23, leave out from ‘paragraph' to end of line 30 and insert
‘A15 shall apply to them.”.'.
No. 326, in schedule 4, page 167, line 18, leave out ‘(2) or (3)(a),'.
No. 327, in schedule 4, page 169, line 17, at end insert—
‘21A In Schedule 3 to SSFA 1998 (funding of foundation, voluntary and foundation special schools), in paragraph 2, after sub-paragraph (7) insert—
“(7A) In sub-paragraph (6)(b) the reference to proceeds of sale of other premises does not include the proceeds of disposal of land to which paragraph A2, A9 or A16 of Schedule 22 applies.”.'.—[Jacqui Smith.]