EDUCATION, ENGLAND PART I INTRODUCTION Citation, commencement, application and interpretation 1 1 These Regulations may be cited as the Financing of Maintained Schools (England) Regulations 2001 and shall come into force on 14th March 2001. 2 These Regulations shall apply for the purposes of the financing of maintained schools in England in the financial year beginning on 1st April 2001. 3 In these Regulations— “the 1996 Act ” means the Education Act 1996 ; “the 1998 Act ” means the School Standards and Framework Act 1998; “the 1999 Regulations ” means the Financing of Maintained Schools Regulations 1999 ; “the 2000 Regulations ” means the Financing of Maintained Schools (England) Regulations 2000 . 4 In these Regulations “maintained school” means a community, foundation or voluntary school or a community or foundation special school. 5 In these Regulations a reference to proposals for the establishment of a school is a reference to a proposal for the establishment of the school under section 35, 41 or 339(1) of the 1996 Act or section 28 or 31 of, or paragraph 5 of Schedule 7 to, the 1998 Act. 6 In these Regulations, except in Part IV where the definition in regulation 27 applies, a reference (however framed) to a community, foundation or voluntary school or a community or foundation special school includes a proposed school which on implementation of proposals for the establishment of the school will be such a school and which has a temporary governing body. 7 In these Regulations a reference to a governing body includes the temporary governing body of a proposed school falling within paragraph (6). 8 In these Regulations a reference to a primary or secondary school means a primary or secondary school which is a community, foundation or voluntary school. 9 In these Regulations a reference (however framed) to schools maintained by a local education authority does not include schools which are not maintained schools as defined in paragraph (4). 10 In these Regulations a reference to the permanent exclusion of a pupil is a reference to his permanent exclusion as defined from time to time for the purposes of section 494 of the 1996 Act . 11 In these Regulations references to net expenditure or to a net local schools budget— a are references to that expenditure or that local schools budget net of related fees, charges, specific grant or other income received by the local education authority; b except that there is not to be deducted in order to arrive at the net local schools budget, any specific grant which is used to support expenditure through the individual schools budget or which is a specific grant only to the extent that it has to be used for supporting any or all of the authority’s expenditure through the local schools budget. 12 In these Regulations a reference to a former grant-maintained or grant-maintained special school is a reference to a school which was such a school within the meaning of the 1996 Act immediately before 1st April 1999. 13 Unless the context otherwise requires, words or expressions used in these Regulations set out in the first column of the following table shall have the meanings attributed to them by the provisions set out opposite thereto in the second column. budget share section 47(1) of the 1998 Act delegated budget section 49(7) of the 1998 Act expenditure regulation 3(2) of these Regulations (for the purposes of Part II of these Regulations) financial year section 579(1) of the 1996 Act formula regulation 10 of these Regulations individual schools budget section 46(2) of the 1998 Act key stage section 355(1) of the 1996 Act local schools budget section 46(1) of the 1998 Act maintained school regulation 1(4) of these Regulations maintenance grant sections 244(1) and 250(1) of the 1996 Act nursery school section 6(1) of the 1996 Act permanent exclusion regulation 1(10) of these Regulations scheme section 48(5) of the 1998 Act school maintained by a local education authority regulation 1(9) of these Regulations school year section 579(1) of the 1996 Act special educational needs section 312(1) of the 1996 Act. 14 Unless the context otherwise requires, a reference in these Regulations to a numbered regulation, Part or Schedule is a reference to the regulation or Part of, or Schedule to, these Regulations so numbered and a reference to a numbered paragraph is a reference to the paragraph so numbered in the regulation or Schedule in which the reference appears. Operation of the 2000 Regulations 2 A school’s budget share for the financial year beginning on 1st April 2000 may only be redetermined in the financial year beginning on 1st April 2001 in accordance with the provisions of the 2000 Regulations or the Financing of Maintained Schools (England) ( No. 2) Regulations 2000 , if such redetermination makes provision for a pupils permanently excluded or admitted following a permanent exclusion; or b the correction of errors, whether in calculation or data, under any of the provisions of those Regulations. PART II LOCAL AND INDIVIDUAL SCHOOLS BUDGET Local schools budget 3 1 The classes or descriptions of local education authority expenditure specified in sub-paragraphs (a) and (b) below are hereby prescribed for the purposes of section 46(1) of the 1998 Act and the determination of a local education authority’s local schools budget subject to the exceptions in regulation 4— a expenditure incurred in connection with the authority’s functions in relation to the provision of primary and secondary education; and b expenditure on items listed in paragraph 27(a), (b), (d) and (r) to (t) of Schedule 1 in so far as such expenditure does not fall within sub-paragraph (a) above. 2 For the purposes of this Part expenditure does not include expenditure defrayed by fees and charges collected by the governing body of a maintained school which are— a specifically required or permitted to be collected by any provision of the Education Acts; or b in respect of the use of school premises or equipment. Exceptions 4 A local education authority’s local schools budget shall not include the following classes or descriptions of expenditure— a expenditure in connection with nursery schools; b expenditure in connection with any provision made for children who have not attained the age of five except where such provision is made at a maintained school or the expenditure is by way of fees paid under section 320 or 348 of the 1996 Act (special provision for children with special educational needs); c expenditure on payments to another local education authority pursuant to section 492, 493 or 494 of the 1996 Act (recoupment between authorities); d expenditure which the authority propose to capitalise in their accounts in accordance with proper practices being those accounting practices— i which the authority are required to follow by virtue of any enactment, or ii which, whether by reference to any generally recognised published code or otherwise, are regarded as proper accounting practices to be followed in the keeping of the accounts of local authorities, either generally or of the description concerned, but in the event of any conflict in any respect between the practices falling within sub-paragraph (i) above and those falling within sub-paragraph (ii) above, only those falling within sub-paragraph (i) above are to be regarded as proper practices ; e expenditure expected to be offset by income received from Her Majesty’s Chief Inspector of Schools in England or Her Majesty’s Chief Inspector of Schools in Wales; f expenditure for the purposes of section 26 of the Road Traffic Regulation Act 1984 (arrangements for patrolling school crossings); and g expenditure on the payment of allowances under section 518 of the 1996 Act to pupils over compulsory school age to the extent that it is expected to be offset by specific grant paid by the Secretary of State. Individual schools budget 5 A local education authority may deduct from their local schools budget any or all of the classes or descriptions of planned expenditure set out in Schedule 1, in whole or in part, in order to arrive at their individual schools budget for the financial year. PART III SCHOOLS' BUDGET SHARES: MAIN PROVISIONS Determination of budget shares 6 This Part and Parts IV and V apply for the purpose of determining the amount which a local education authority may determine as a maintained school’s budget share for the financial year beginning on 1st April 2001. Allocation of individual schools budget 7 A local education authority shall allocate in the financial year beginning on 1st April 2001 in accordance with this Part and Parts IV and V all of their individual schools budget for that financial year as the budget shares of schools which they maintain. Timing of determination of budget shares 8 1 The amount of a school’s budget share for the financial year beginning on 1st April 2001 shall be initially determined by the local education authority before the beginning of that financial year. 2 A local education authority may decide not to initially allocate all of their individual schools budget in accordance with this Part in the form of budget shares at the beginning of the financial year and instead to retain an amount for the purpose of redeterminations or the correction of errors but such amount must be used for that purpose or distributed to schools as required by regulation 21(4) before the end of the financial year. Consultation 9 1 Subject to paragraph (2), a local education authority shall consult the governing body and head teacher of every school which they maintain about any proposed changes in relation to the factors and criteria that were taken into account, or the methods, principles and rules that were adopted, in their formula under the 2000 Regulations in the financial year beginning on 1st April 2000 (including any new factors, criteria, methods, principles or rules). 2 Paragraph (1) shall not apply to changes required by regulation 8(2), 11(7), 14(2), 20, 21(4) or 22 or by Part IV. 3 Consultation under this regulation shall take place in sufficient time to allow the outcome to be taken into account in the determination of the authority’s formula and in the initial determination of schools' budget shares before the beginning of the financial year. 4 The requirement to consult in paragraph (1) can be satisfied by consultation which takes place during the financial year beginning on 1st April 2000 before the coming into force of these Regulations. 5 A local education authority shall inform all those who were consulted of the outcome of the consultation. Formula for determination of budget shares 10 1 A local education authority shall determine before the beginning of the financial year beginning on 1st April 2001, and after the consultation referred to in regulation 9, the formula which they will use to determine schools' budget shares in that financial year having regard to the factors, criteria and requirements set out in this Part and in Part IV. 2 A local education authority shall have regard to the desirability of such a formula being simple, objective, measurable and predictable in effect, and clearly expressed. 3 A local education authority may not use factors or criteria in their formula under this Part which make an allowance, in whole or in part, for— a any amount included in the school’s budget share by virtue of Part IV; or b any education standards grants, received by the authority pursuant to section 484 of the 1996 Act, paid in respect of capital projects, of an amount determined by the Secretary of State by reference to a formula, and decisions about the spending of which the authority are required to delegate to the governing bodies of schools. 4 Subject to regulation 31 (additional arrangements approved by the Secretary of State), a local education authority shall use the formula determined under paragraph (1) in all determinations and redeterminations of budget shares in respect of the financial year. Pupil numbers 11 1 In determining budget shares for primary and secondary schools, a local education authority shall take into account in their formula the number of registered pupils at those schools on such date or dates as may be determined by the authority in accordance with regulation 12, weighted if the authority consider it appropriate in accordance with paragraph (5). 2 For the purposes of paragraph (1), the number of registered pupils does not include— a pupils in places which the authority recognise as reserved for children with special educational needs or for children in nursery classes; or b in relation to the funding of boarding accommodation only, pupils in boarding accommodation at boarding schools other than special schools. 3 An authority may in determining budget shares for special schools, or for primary or secondary schools with places which the authority recognise as reserved for children with special educational needs or for children in nursery classes, take into account in their formula the number of registered pupils at those special schools or the number of pupils in those reserved places at primary or secondary schools on such date or dates as may be determined by the authority, weighted if the authority consider it appropriate in accordance with paragraph (5). 4 If the authority estimate the number of registered pupils at a school they must consult the head teacher of the school. 5 A local education authority may weight pupil numbers according to any or all of the following factors— a age, including weighting according to key stage or year group; b whether a pupil is provided with nursery education by a school; c in the case of pupils aged under five, their exact age when admitted to the school; d in the case of pupils aged under five, whether they have been admitted to the school in excess of planned admission limits agreed with the authority; e the subject or course of study in the case of pupils in a sixth form; and f special educational needs. 6 A local education authority may adjust the number of registered pupils used to determine or redetermine a school’s budget share where it is appropriate to do so in order to take into account, wholly or partly, the permanent exclusion of a pupil from the school or the admission of a pupil following his permanent exclusion from another school maintained by a local education authority. 7 Subject to paragraph (8), a local education authority shall provide in their formula that the average amount per pupil allocated in accordance with regulation 11(1) or (3) in respect of pupils who are— a in key stage 1 or 2; b in key stage 3 or 4; c above compulsory school age, shall in each case be at least 2.5 per cent. higher than the average amount per pupil initially determined in each of those three cases under the corresponding provisions of the 2000 Regulations. 8 Paragraph (7) shall not apply in relation to any amount allocated in accordance with paragraph (3) weighted in accordance with paragraph (5)(f) (special educational needs). Dates for ascertaining pupil numbers 12 1 Where the authority determine only one date for the purposes of regulation 11(1) that must be a date which falls— a before 1st April 2001; and b in the school year in which 1st April 2001 falls. 2 Where the authority determine more than one date for the purposes of regulation 11(1) then— a one of those dates must satisfy paragraph (1) above; b of the other date or dates— i no date may be earlier than the beginning of the school year in which 1st April 2001 falls; ii the authority may determine a date or dates which are in the future and estimate the number of registered pupils at the school on that date or those dates. 3 Paragraphs (1) and (2) (restrictions on choice of dates for the purposes of regulation 11(1)) shall not apply in relation to pupils in nursery or reception classes whom the authority take into account under regulation 11(1) (pupils in nursery classes not occupying places which the authority recognise as reserved for such pupils or any pupils in reception classes). Pupil numbers: Dual registration 13 Where a pupil is, in accordance with regulations made under section 434 of the 1996 Act , a registered pupil at more than one school then that pupil shall be treated as being a full-time pupil at each such school unless the authority expressly provide otherwise in their formula. Places 14 1 In determining budget shares for— a special schools; b primary or secondary schools with places which the authority recognise as reserved for children with special educational needs or for children in nursery classes; or c schools with boarding accommodation, the local education authority may take into account in their formula the number of places which they wish to fund at those special schools, the number of places of the kind described above at those primary or secondary schools or the amount of boarding accommodation which they wish to fund and in the case of paragraphs (a) and (b) above may take account of the special educational needs in question. 2 A local education authority shall provide in their formula that any amount allocated in accordance with— a paragraph (1)(a); or b in so far as it relates to special educational needs, paragraph (1)(b), in respect of a place at a school shall be at least 2.5 per cent. higher than the amount initially determined in relation to the financial year beginning on 1st April 2000 in respect of a place appropriate to a pupil with the same characteristics at that school under the corresponding provisions of the 2000 Regulations. Differential funding 15 1 A local education authority shall use factors or criteria which differentiate between different categories or descriptions of schools in so far as the functions of the governing bodies of those schools justify such differentiation but may not otherwise do so except as required or expressly permitted by these Regulations. 2 A local education authority shall use factors or criteria which differentiate between a school and other schools of the same category or description if the choice that that school’s governing body have made under these Regulations regarding particular expenditure funding for which is to be included in their school’s budget share, justifies such differentiation. 3 A local education authority are not required to use factors or criteria in their formula which differentiate between— a primary and secondary schools, and special schools; b schools whose pupils are in different age ranges, but they may do so. 4 If a local education authority choose to use a particular factor or criteria to delegate funding to all or some of the schools which they maintain, and a school which it is proposed to discontinue during the financial year did not receive funding in accordance with that factor or criteria in the financial year beginning on 1st April 2000, then this regulation shall not require the local education authority to delegate such funding to that school in accordance with that factor or criteria but they may do so. Additional factors or criteria 16 Subject to regulation 15 (differential funding), a local education authority may, in determining budget shares for schools which they maintain, take into account in their formula, as they consider appropriate, any or all of the factors or criteria set out in Schedule 2. Budget share adjustments in relation to the financial year beginning on 1st April 2000: Pupil numbers 17 1 This regulation applies to the extent that a school’s budget share for the financial year beginning on 1st April 2000 was determined pursuant to regulation 11(1) or (6) of the 2000 Regulations other than in cases where pupil numbers were weighted according to special educational needs. 2 Subject to paragraph (3), to the extent that a school’s budget share for the financial year beginning on 1st April 2000 was— a determined by reference to an estimate of the number of registered pupils at the school; and b differences between the estimated number of pupils on those dates and the actual number of pupils at the school on those dates were not taken into account in a redetermination of the school’s budget share for that financial year, the local education authority shall determine that school’s budget share for the financial year beginning on 1st April 2001 so as to take into account those differences. 3 A local education authority may determine a school’s budget share so as to make such adjustments which are appropriate to take into account, wholly or partly, any increases in pupil numbers during the course of the financial year beginning on 1st April 2000. 4 In so far as a determination under this regulation would require the amount that would otherwise be the budget share of a former grant-maintained or grant-maintained special school to be reduced, it may not be reduced by an amount greater than the amount by which the school’s budget share for the financial year beginning on 1st April 2000 determined in accordance with regulation 18 (transitional funding) of the 2000 Regulations could have been reduced. 5 In so far as a determination under this regulation would require the amount that would otherwise be the budget share of a former grant-maintained or grant-maintained special school to be increased, there shall be deducted from that increase any amount for transitional funding determined in respect of the school in the financial year beginning on 1st April 2000 under regulation 18 (transitional funding) of the 2000 Regulations. 6 A local education authority shall include factors or criteria in their formula which satisfy the requirements of this regulation. Budget share adjustments in relation to the financial year beginning on 1st April 2000: Non-pupil number factors 18 1 This regulation applies to the extent that a school’s budget share for the financial year beginning on 1st April 2000 was determined other than pursuant to regulation 11(1) or (6) of the 2000 Regulations or was so determined in accordance with pupil numbers weighted according to special educational needs. 2 Where— a there has been a change in the data on the basis of which that determination was made; and b that change was not taken into account in a redetermination of the school’s budget share for the financial year beginning on 1st April 2000, the local education authority may determine that school’s budget share so as to take into account those changes. 3 In so far as a determination under this regulation would require the amount that would otherwise be the budget share of a former grant-maintained or grant-maintained special school to be reduced, it may not be reduced by an amount greater than the amount by which the school’s budget share for the financial year beginning on 1st April 2000 determined in accordance with regulation 18 (transitional funding) of the 2000 Regulations could have been reduced. 4 In so far as a determination under this regulation would require the amount that would otherwise be the budget share of a former grant-maintained or grant-maintained special school to be increased, there shall be deducted from that increase any amount for transitional funding determined in respect of the school in the financial year beginning on 1st April 2000 under regulation 18 (transitional funding) of the 2000 Regulations. 5 A local education authority shall include factors or criteria in their formula which satisfy the requirements of this regulation. New schools 19 1 In the case of— a a proposed school referred to in regulation 1(6); b a school proposals for the establishment of which have not been fully implemented; c a school which is the subject of a significant change of character, a significant enlargement of its premises or a transfer to a new site under the 1996 Act; or d a school which is the subject of a prescribed alteration within the meaning of the 1998 Act, the local education authority shall include factors or criteria in their formula which enable them to determine the school’s budget share so as to take into account the particular needs of the school or proposed school; and in particular may, in any financial year preceding the financial year in which a school first admits pupils, determine the amount of the budget share as zero. 2 For the purposes of these Regulations, proposals for the establishment of a school have been fully implemented when the number of pupils admitted to the school in each age group has, in the opinion of the local education authority, reached— a that number of pupils indicated, when proposals for the establishment of the school were published, as the number of pupils to be admitted to each age group when the proposals were fully implemented; or b if no such number was indicated, such number as the authority may determine. Transitional funding 20 1 A local education authority shall determine the budget share of a former grant-maintained or grant-maintained special school so as to include an amount for transitional funding. 2 The amount referred to in paragraph (1) is the amount if any by which the school’s protected level of funding in respect of the financial year beginning on 1st April 2001 determined by the local education authority in accordance with Schedule 3 is greater than the school’s adjusted budget share for that financial year. 3 For the purposes of this regulation, a school’s adjusted budget share is its budget share determined in accordance with this Part and Part V but not taking into account the effect of this regulation and regulations 17 (budget share adjustments: pupil numbers), 18 (budget share adjustments: non-pupil number factors), 22 (excluded pupils), 23, 24 and 25 (additional provisions for redeterminations) and Part IV. 4 The amount of a school’s transitional funding shall not be affected by a net increase during the financial year in that school’s adjusted budget share arising out of changes in the numbers of pupils with statements of special educational needs or changes in the needs of such pupils. 5 A local education authority which maintain a former grant-maintained or grant-maintained special school shall include factors or criteria in their formula which satisfy the requirements of this regulation. Redetermination of budget shares 21 1 A local education authority shall include factors or criteria in their formula which enable them, if they so wish, to redetermine a school’s budget share during the course of the financial year to take account wholly or partly of— a changes during the financial year in the number or estimates of the number of registered pupils (including the substitution of actual numbers for estimates) at the school by reference to which the budget share was determined in accordance with regulation 11(1) or (3) other than in cases where pupil numbers were weighted according to special educational needs; b other changes during the financial year in the data by reference to which the budget share was determined; and c changes during the financial year in the amount of the authority’s individual schools budget. 2 This regulation is subject to regulation 20 (transitional funding). 3 A local education authority shall set out in their formula the factors or criteria that they will use, in redetermining schools' budget shares in accordance with paragraph (1), to allocate the planned expenditure referred to in paragraph 32 of Schedule 1. 4 Where the local education authority propose to retain part of their individual schools budget pursuant to regulation 8(2) for the purpose of redeterminations or the correction of errors they shall include factors or criteria in their formula which require them to redetermine schools' budget shares before the end of the financial year so as to distribute to schools the unallocated balance of any such retained amount on the basis of pupil numbers in accordance with regulation 11(1) or (3). 5 A local education authority shall include factors or criteria in their formula which enable them to adjust the number of registered pupils used to determine or redetermine a school’s budget share where it is appropriate to do so in order to take into account, wholly or partly— a any reduction or increase in the school’s budget share under regulation 22 (pupils permanently excluded or admitted following a permanent exclusion); or b any increase in the school’s budget share under this regulation in respect of significant increases in pupil numbers funded by the planned expenditure referred to in paragraph 32 of Schedule 1. Pupils permanently excluded or admitted following a permanent exclusion 22 1 Where a pupil is permanently excluded from a school maintained by a local education authority, the authority shall redetermine the school’s budget share for that financial year in accordance with paragraph (2). 2 The school’s budget share shall be reduced by the amount A × (B/52) where— A is the amount, in the financial year in which the permanent exclusion takes effect (as defined from time to time for the purposes of section 494 of the 1996 Act (“the relevant date”)), determined by the authority, in accordance with this Part, to be attributable for the full financial year to a registered pupil of the same age and characteristics as the pupil in question at primary or secondary schools maintained by the authority: For the purposes of this definition the amount attributable to a registered pupil is the sum of the amounts determined in accordance with the authority’s formula or regulation 31 by reference to pupil numbers rather than by reference to the number of places at the school or any other factor or criteria not dependent on pupil numbers; and B is the number of complete weeks remaining in the financial year calculated from the relevant date: EXCEPT that where the permanent exclusion takes effect on or after 1st April in a school year at the end of which pupils of the same age or age group as the pupil in question normally leave that school prior to being admitted to another school with a different pupil age range, B is the number of complete weeks remaining in that school year calculated from the relevant date. 3 Where a pupil is admitted to a school maintained by a local education authority (“the admitting school”) who has been permanently excluded from another maintained school in that financial year the authority shall redetermine the admitting school’s budget share in accordance with paragraph (4). 4 The school’s budget share shall be increased by an amount which may not be less than the amount D × (E/F) where— D is the amount by which the authority reduce the budget share of the school from which the pupil was permanently excluded or would have reduced it had that school been maintained by the authority; E is the number of complete weeks remaining in the financial year during which the pupil is a registered pupil at the admitting school; F is the number of complete weeks remaining in the financial year calculated from the relevant date. 5 A local education authority shall include factors or criteria in their formula which satisfy the requirements of this regulation. Additional provisions for redeterminations in relation to financial years beginning on or before 1st April 1999: (1) Former grant-maintained or grant-maintained special schools in the period before they became such schools and (2) Schools which were never such schools 23 1 A local education authority may in the circumstances described in paragraph (2) redetermine a school’s budget share for the financial year beginning on 1st April 2001 to take into account changes in that school’s non-domestic rates liability or to correct errors in data supplied by the head teacher or governing body of the school, by reference to which the following were determined— a the school’s budget share within the meaning of the 1996 Act for any financial year beginning on or before 1st April 1998; or b in the case of a school which is not a former grant-maintained or grant-maintained special school, the school’s budget share within the meaning of the 1998 Act for the financial year beginning on 1st April 1999. 2 The circumstances referred to in paragraph (1) are that— a such matters have not already been taken into account in any determination or redetermination of that school’s budget share within the meaning of the 1996 Act or the 1998 Act or its maintenance grant (as a former grant-maintained or grant-maintained special school); and b such redetermination as is proposed could have been made in relation to the preceding financial year in question under the terms of the authority’s scheme within the meaning of the 1996 Act in force in that year or, in the case of the financial year beginning on 1st April 1999, the 1999 Regulations. 3 A local education authority shall include factors or criteria in their formula which satisfy the requirements of this regulation. Additional provisions for redeterminations in relation to the financial years beginning on 1st April 1999: Former grant-maintained or grant-maintained special schools 24 1 A local education authority may redetermine a former grant-maintained or grant-maintained special school’s budget share for the financial year beginning on 1st April 2001 to take into account changes in that school’s non-domestic rates liability or to correct errors in data supplied by the head teacher or governing body of the school, by reference to which the school’s budget share for the financial year beginning on 1st April 1999 was determined if— a such matters have not already been taken into account in any determination or redetermination of that school’s budget share for the financial year beginning on 1st April 1999 or 1st April 2000; b such redetermination as is proposed could have been made in that financial year beginning on 1st April 1999 in accordance with the 1999 regulations. 2 In so far as a determination under paragraph (1) would require the amount that would otherwise be the budget share of the school to be reduced, it may not be reduced by an amount greater than the amount by which the school’s budget share for the financial year beginning on 1st April 1999 determined in accordance with regulation 18 (transitional funding) of the 1999 Regulations could have been reduced. 3 In so far as a determination under paragraph (1) would require the amount that would otherwise be the budget share of a former grant-maintained or grant-maintained special school to be increased, there shall be deducted from that increase any amount for transitional funding determined in respect of the school in the financial year beginning on 1st April 1999 under regulation 18 (transitional funding) of the 1999 Regulations. 4 A local education authority shall include factors or criteria in their formula which satisfy the requirements of this regulation. Additional provisions for redeterminations in relation to financial years beginning on or before 1st April 1998: Former grant-maintained or grant-maintained special schools 25 1 A local education authority shall, in the case of a former grant-maintained or grant-maintained special school and in so far as required by paragraphs (2) to (4), redetermine that school’s budget share for the financial year beginning on 1st April 2001 to take into account changes in data, other than pupil numbers, by reference to which the school’s maintenance grant for any financial year beginning on or before 1st April 1998 was determined if such changes have not already been taken into account in any determination or redetermination of that school’s maintenance grant or budget share for a financial year beginning before 1st April 2001. 2 The local education authority shall add or subtract such amount, if any, determined by the Secretary of State in accordance with the provisions of the regulations made under section 244(2) of the 1996 Act in force in the preceding financial year in question and as if any reference to the Funding Agency for Schools was a reference to the Secretary of State. 3 The Secretary of State may decline to make a determination under paragraph (2) unless— a he has received by 31st March 2001, a request in writing to make such a determination; and b the person making the request has provided the Secretary of State by 31st March 2001 with sufficient information about the changed data to enable him to carry out the necessary calculations without further enquiry. 4 If the Secretary of State considers it likely that the changes in data referred to in paragraph (1) and any consequent change in the school’s maintenance grant for that year would have meant that the governing body would have received a larger payment of special purpose grant pursuant to section 245 of the 1996 Act in respect of the costs incurred by the school in respect of Value Added Tax in that year he may add to the amount determined under paragraph (2) an amount which he considers would be equivalent to that increase. Conversely if he considers that the governing body would have been entitled to a smaller such payment he may subtract an amount which he considers would be equivalent to that reduction for the financial year in question. 5 Where the Secretary of State has confirmed in writing to a local education authority that he does not propose to make a determination under paragraph (2) in respect of a particular school then that local education authority may in the circumstances described in paragraph (6) redetermine that school’s budget share for the financial year beginning on 1st April 2001 to take into account changes in that school’s non-domestic rates liability or to correct errors in data supplied by the head teacher or governing body of the school, by reference to which the school’s maintenance grant (as a grant-maintained or grant-maintained special school) was determined for the financial year in question. 6 The circumstances referred to in paragraph (5) are that— a such matters have not already been taken into account in any determination or redetermination of that school’s budget share within the meaning of the 1996 Act or the 1998 Act or its maintenance grant (as a former grant-maintained or grant-maintained special school); b such redetermination as is proposed could have been made in the preceding financial year in question in relation to a school maintained by the authority under the terms of the authority’s scheme within the meaning of the 1996 Act in force in that year; and c any increase or decrease in the amount of the school’s budget share to take into account changes in the school’s non-domestic rates liability does not exceed the change in the school’s net liability in respect of rates. 7 In so far as a determination under paragraph (5), arising from adjustments relating to the financial year beginning on 1st April 1998, would require the amount that would otherwise be the budget share of the school to be reduced, it may not be reduced by an amount greater than the amount by which the school’s maintenance grant for that financial year determined in accordance with regulation 9 (transitional funding) of the Education (Grant-maintained and Grant-maintained Special Schools) (Finance) Regulations 1998 (“the 1998 Regulations ”) could have been reduced. 8 In so far as a determination under paragraph (5), arising from adjustments relating to the financial year beginning on 1st April 1998, would require the amount that would otherwise be the budget share of a former grant-maintained or grant-maintained special school to be increased, there shall be deducted from that increase any amount for transitional funding determined in respect of the school in the financial year beginning on 1st April 1998 under regulation 9 (transitional funding) of the 1998 Regulations. 9 A local education authority shall include factors or criteria in their formula which satisfy the requirements of this regulation. Percentage of “pupil-led” funding 26 1 In determining and redetermining budget shares for primary and secondary schools a local education authority shall ensure that their formula provides that at least 80 per cent. of the amount which is their individual schools budget, less the amounts referred to in paragraph (2), is allocated in one or more of the following manners— a in accordance with regulation 11(1) or (3); b in accordance with any other factors or criteria using pupil numbers which provide for the same funding for pupils of the same age irrespective of the nature of the school which they attend but such funding for children with special educational needs who do not have statements of special educational needs shall only count towards the figure of 80 per cent. referred to above to the extent that it does not exceed 5 per cent. of the total amount allocated by the authority to primary and secondary schools from their individual schools budget; c to places in primary schools which the authority recognise as reserved for children in nursery classes; d to places in primary or secondary schools which the authority recognise as reserved for children with special educational needs; e for pupils with statements of special educational needs where funding in respect of such pupils forms part of schools' delegated budgets; f by reference to any or all of the following: the recruitment of, the length, type and subject matter of courses taken by, and the achievements of, pupils in a sixth form at a school; and g to places for pupils in boarding accommodation at boarding schools other than special schools. 2 For the purposes of this regulation the following amounts are to be excluded from the local education authority’s individual schools budget— a the budget shares of special schools; b any transitional funding determined under regulation 20; c any part of the individual schools budget retained pursuant to regulation 8(2) for the purpose of redeterminations or the correction of errors in relation to special schools; d any amount determined under Part IV. PART IV ADDITIONAL AMOUNT TO BE ADDED TO AMOUNT DETERMINED UNDER PART III Definition for Part IV 27 In this Part a reference to a maintained school includes a proposed school which, on implementation of the proposals for the establishment of the school, will be a community, foundation or voluntary school or a community or foundation special school in the financial year beginning on 1st April 2001. Determination of additional amount 28 1 In making the initial determination of a maintained school’s budget share, a local education authority shall, subject to paragraphs (2), (3) and (5) and regulation 31 below, add to the amount determined in accordance with Part III, the amount which is set out in column (2) of the table below, opposite the description of that school in column (1). (1) (2) Description of school Amount to be added Primary school with fewer than 100.5 pupils £6,000 Primary school with 100.5 pupils or more but with fewer than 200.5 pupils £12,000 Primary school with 200.5 pupils or more but with fewer than 400.5 pupils £20,000 Primary school with 400.5 pupils or more but with fewer than 600.5 pupils £25,000 Primary school with 600.5 pupils or more £40,000 Secondary school with fewer than 600.5 pupils £50,000 Secondary school with 600.5 pupils or more but with fewer than 1,200.5 pupils £60,000 Secondary school with 1,200.5 pupils or more £70,000 Special school with fewer than 100.5 pupils £18,000 Special school with 100.5 pupils or more £25,000 2 A local education authority shall determine the budget share of a middle deemed primary school which has a year 8 or a year 9 class as if that school were a secondary school. 3 Where a proposed school to which this Part applies will not have a budget share on or before 1st April 2001, a local education authority shall redetermine the budget share of that school in accordance with this Part as soon as it does have a budget share. 4 References in the table to a number of pupils are references to— a the number of full-time equivalent pupils registered at the school on 18th January 2001; or b in the case of a school which is to open during the financial year or a school proposals for the establishment of which have not been fully implemented, the number of full-time pupils indicated, when proposals for the establishment of the school were published, as the number of such pupils to be admitted to the school when the proposals were fully implemented, where the “full-time equivalent” is the number of full-time pupils plus half the number of part-time pupils, and a “part-time pupil” is one who attends school other than on the basis that he should attend both morning and afternoon sessions at least 5 days each week. 5 A local education authority shall not determine the budget share of a school in accordance with this Part if proposals to discontinue the school in the financial year beginning on 1st April 2001 have already been approved. Redeterminations of budget shares under Part III 29 Whenever a local education authority redetermine a school’s budget share in accordance with Part III they shall— a first determine an amount in accordance with that Part without taking into account the amount to be added in accordance with this Part; and then b add to the amount so determined the amount to be added in accordance with this Part. PART V CORRECTION OF ERRORS AND ADDITIONAL ARRANGEMENTS APPROVED BY THE SECRETARY OF STATE Correction of errors 30 A local education authority may at any time during the financial year redetermine a school’s budget share for the financial year beginning on 1st April 2001 in order to correct an error in a determination or redetermination under these Regulations, whether arising from a mistake as to the number of registered pupils at the school or otherwise. Additional arrangements approved by the Secretary of State 31 1 The Secretary of State may, where it appears to him to be expedient to do so, authorise a local education authority to determine or redetermine budget shares, to such extent as he may specify, in accordance with arrangements approved by him in place of the arrangements provided for by these Regulations. 2 Authorisations given and arrangements approved by the Secretary of State under the 1999 Regulations or the 2000 Regulations shall, unless the contrary intention appears in such authorisation or arrangements, continue to apply in relation to the financial year beginning on 1st April 2001. PART VI SCHEMES Required content of schemes 32 A scheme prepared by a local education authority under section 48(1) of the 1998 Act shall deal with the matters connected with the financing of schools maintained by the authority set out in Schedule 4. Manner of publication 33 For the purposes of paragraph 1(7) of Schedule 14 to the 1998 Act (prescribed manner of publication of schemes) a scheme shall be published by the local education authority concerned on its coming into force and in the circumstances prescribed in regulation 34 by— a furnishing a copy to the governing body and a copy to the head teacher of each school maintained by the authority; and b making a copy available for reference at all reasonable times and without charge at each school maintained by the authority and at the principal education office of the authority. Additional occasions when schemes require publication 34 For the purposes of paragraph 1(7)(b) of Schedule 14 to the 1998 Act (prescribed occasions on which publication of schemes is required) a scheme shall be published by the local education authority concerned on the coming into force of any revision of it. Estelle Morris Minister of State, Department for Education and Employment 15th February 2001