EDUCATION, ENGLAND Citation, commencement, application and interpretation 1 1 These Regulations may be cited as the LEA Budget, Schools Budget and Individual Schools Budget (England) Regulations 2002 and shall come into force on 10th January 2003. 2 These Regulations shall apply in relation to the financial year beginning on 1st April 2003. 3 In these Regulations— “the 1996 Act ” means the Education Act 1996 ; “the 1998 Act ” means the School Standards and Framework Act 1998; “the 2000 Act ” means the Learning and Skills Act 2000 ; “the 2002 Act ” means the Education Act 2002 . 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 28 or 31 of, or paragraph 5 of Schedule 7 to, the 1998 Act, section 70 of the 2002 Act or section 113A of and Schedule 7A to the 2000 Act. 6 In these Regulations, 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, unless otherwise stated, references to expenditure are references to that expenditure net of— a all related specific grants; b all related fees, charges and income; c funding received from the Secretary of State in respect of PFI scheme unitary payments; and d any LPSA grant which the authority propose to apply to an agreed activity or activities in pursuance of targets specified under the relevant Local Public Service Agreement received by the local education authority. 11 In these Regulations, a reference to specific grant means any grant paid to the authority under conditions which impose restrictions on the particular purposes of the authority for which the grant may be used, provided that a specific grant shall not include— a any grant made by the Learning and Skills Council in respect of sixth form funding; or b any specific grant which is used to support expenditure through the individual schools budget. 12 In these Regulations, a reference to LSPA grant is a reference to a special grant paid to the authority under section 88B of the Local Government Finance Act 1988 in connection with a Local Public Service Agreement into which the authority has entered. 13 In these Regulations, a reference to a PFI scheme unitary payment is a reference to a charge payable by the local education authority under a private finance transaction. 14 In these Regulations, a reference to a private finance transaction is a reference to a transaction as defined by regulation 16 of the Local Authorities (Capital Finance) Regulations 1997 . 15 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. 16 In these Regulations, a reference to a formula means a formula determined (after consultation) by the local education authority before the beginning of the financial year beginning on 1st April 2003 by which they will determine schools' budget shares in that financial year having regard to factors, criteria and requirements prescribed in regulations made under section 47 of the 1998 Act. 17 In these Regulations, a reference to capital expenditure means expenditure which an authority propose to capitalise in their accounts in accordance with proper practices being those accounting practices— a which the authority are required to follow by virtue of any enactment; or b which, so far as they are consistent with any such enactment, are generally regarded whether by reference to any generally recognised published code or otherwise, as proper accounting practices to be followed in the keeping of the accounts of local authorities, either generally or of the description concerned . 18 In these Regulations, a reference to CERA means capital expenditure which an authority expect to charge to a revenue account of the authority as defined in section 41(2) of the Local Government and Housing Act 1989 . 19 In these Regulations, a reference to a particular class or description of expenditure in relation to maintained schools and to pupils registered at such schools shall include any expenditure of that class or description as the authority may incur in relation to Academies and to pupils registered at Academies. Schools Budget 2 The classes or descriptions of local education authority expenditure specified in paragraphs (a), (b) and (c) (other than expenditure described in regulation 3) are hereby prescribed for the purposes of section 45A(2) of the 1998 Act and the determination of a local education authority’s schools budget, subject to the exceptions in regulation 4— a expenditure on the provision and maintenance of maintained schools and maintained nursery schools and on the education of pupils registered at those schools; b expenditure on the education of pupils at independent schools, non-maintained special schools , pupil referral units , at home and in hospital, and on any other arrangements for the provision of primary and secondary education for pupils otherwise than at schools maintained by a local education authority; and c all other expenditure incurred in connection with the authority’s functions in relation to the provision of primary and secondary education, in so far as such expenditure does not fall within paragraphs (a) or (b). LEA Budget 3 1 Subject to paragraph (2), the classes or descriptions of local education authority expenditure specified in Schedule 1 are hereby prescribed for the purposes of section 45A(1) of the 1998 Act and the determination of a local education authority’s LEA budget. 2 The classes or descriptions of local education authority expenditure specified in Schedule 1 shall not include any of the following— i Any expenditure which, by virtue of the authority’s scheme (as defined by section 48(5) of the 1998 Act) or by virtue of any enactment, falls to be met from a school’s budget share; or ii Any expenditure which falls within sub-paragraph (b) of paragraph 1, or paragraph 2, of Schedule 2. Exceptions 4 A local education authority’s LEA budget or schools budget shall not include the following classes or descriptions of expenditure— a capital expenditure other than CERA; b expenditure for the purposes of section 26 of the Road Traffic Regulation Act 1984 (arrangements for patrolling school crossings); and c expenditure incurred by the local education authority under section 51A of the 1998 Act (expenditure incurred for community purposes). Individual schools budget 5 A local education authority may deduct from their schools budget any or all of the classes or descriptions of planned expenditure set out in Schedule 2, in whole or in part, in order to arrive at their individual schools budget for the financial year. David Miliband Minister of State Department for Education and Skills 20th December 2002