Memorandum by the Department for Education and Employment
EDUCATION (NEW GRANT-MAINTAINED SCHOOLS)
(FINANCE) REGULATIONS 1997 (S.I. 1997/956)
The Joint Committee have requested a memorandum on the following
Given that a comparison of the relevant characteristics
of schools is required by regulation 6 for calculating a school's
grant under regulation 4 or 5, explain how characteristics are
determined where (as acknowledged by regulation 6(4)) there is
in fact no actual school with which to make the comparison.
Under both regulations 4 and 5 the funding authority have,
in determining the amount of annual maintenance grant for a new
grant-maintained school, to take into account the budget share
that a comparable LEA maintained school would receive from the
LEA. It does not matter whether or not there is a comparable maintained
school because there does not have to be an actual school in existence
with which to make the comparison.
It may assist the Committee to give an example. Assume that
the funding authority have to determine the amount of annual maintenance
grant for a new primary grant-maintained school. A comparable
maintained school would, having regard to regulation 6(2), be
a maintained county primary school which had the same relevant
characteristics as the grant-maintained school. A characteristic
is relevant for these purposes, having regard to regulation 6(2),
if it is relevant for the purposes of the allocation formula in
the LEA's scheme.
The grant-maintained primary school in question was established
on 1 April 1997 and is situated near to London. It has 50 pupils
and a swimming pool. The funding authority must look at what a
comparable maintained school would have received as its budget
share. There is in fact no LEA maintained school in the area with
exactly the same characteristics but that does not matter. The
funding authority look at the LEA's scheme and work out what the
budget share of a newly opened primary school with 50 pupils (regulation
4) would have been. Alternatively they look at the "minimum
threshold" of pupils or an estimated number of pupils (if
higher) (regulation 5). Not all schemes make specific provision
for newly opened schools and so that may not be a relevant characteristic.
By far the greater part of the budget share will be based on pupil
numbers and so the number of pupils in each age group determined
in accordance with the Regulations will be a relevant characteristic.
In addition the scheme in question may include in the budget
share additional funds for small schools. If the comparable maintained
school would fall within the definition of a small school in the
LEA's scheme then the small size of the grant-maintained school
will be a relevant characteristic.
The school is situated near London and some LEAs near London
make provision in their schemes for London Weighting. However,
if the scheme of the LEA in question makes no such provision (and
never has done) then this will not be a relevant characteristic.
The school has a swimming pool but there is no longer any LEA
maintained school with one and no longer any such factor in the
allocation formula. Regulation 6(1) provides that, where a scheme
used to include a particular factor and it has subsequently been
revised, varied or replaced, then it is deemed, for the purposes
of determining a comparable maintained school's budget share,
still to include it. The fact that the school has a swimming pool
is therefore a relevant characteristic even though the scheme
no longer contains such a factor.
In short therefore relevant characteristics are determined
in accordance with the Regulations by reference to the allocation
formula in the LEA's scheme and it does not matter that there
is no LEA maintained school with those exact same characteristics.
1st July 1997