Education Act 1996

Chapter III E+W Property, staff and contracts

Transfer of property and staff, etc. E+W

201 Transfer of property etc. E+W

(1) Subject to subsection (3), where in relation to any school proposals for acquisition of grant-maintained status are approved—

(a) the property, rights and liabilities mentioned in subsection (2) of any local authority, and

(b) any property, rights and liabilities of the existing governing body,

shall on the date of implementation of the proposals be transferred to, and by virtue of this Act vest in, the governing body incorporated under Chapter II.

(2) The property, rights and liabilities referred to in subsection (1)(a) are—

(a) all land or other property which, immediately before the date of implementation of the proposals, was property used or held by the authority for the purposes of the school, and

(b) all rights and liabilities subsisting immediately before the date of implementation of the proposals which were acquired or incurred by the authority for those purposes.

(3) Subsection (1) shall not apply to rights and liabilities under any contract of employment; and subsection (1)(a) shall not apply to—

(a) any land or other property vested in a local authority as trustees,

(b) any property, rights or liabilities excluded under subsection (5) or (6),

(c) any liability of a local authority in respect of the principal of, or any interest on, any loan, or

(d) any liability of a local authority in respect of compensation for premature retirement of any person formerly employed by them or by any governing body of the school.

(4) Any land or other property of a local authority excluded by virtue of subsection (3)(a) from transfer to the governing body shall, on the date of implementation of the proposals, be transferred to, and by virtue of this Act vest in, the first governors of the school on the trusts applicable immediately before that date under any trust deed regulating the use of that land or other property for the purposes of the school.

(5) If before the date of implementation of the proposals—

(a) the new governing body and the local authority have agreed in writing to exclude any property, and

(b) the Secretary of State has given his written approval of the agreement,

the property, and any rights or liabilities relating to it, shall be excluded.

(6) If in default of agreement under subsection (5)—

(a) the new governing body or the local authority have applied to the Secretary of State to exclude any property, and

(b) the Secretary of State has by order directed its exclusion,

the property, and any rights or liabilities relating to it, shall be excluded.

(7) An agreement under subsection (5) may provide for the property to be used for the purposes of the school acquiring grant-maintained status on such terms as may be specified in or determined in accordance with the agreement; and directions under subsection (6)—

(a) may confer any rights or impose any liabilities that could have been conferred or imposed by such an agreement, and

(b) shall have effect as if contained in such an agreement.

(8) For the purposes of this section, any interest in a dwelling-house which, immediately before the date of implementation of the proposals, is used or held by a local authority for occupation by a person employed to work at the school shall be treated as an interest used or held for the purposes of the school.

(9) References in this section to liabilities incurred by a local authority shall not be read as including liabilities of such an authority to make payments to or in respect of any person in pursuance of any duty imposed on the authority under any statutory provision.

(10) This section is subject to section 198 of the M1 Education Reform Act 1988 (which with Schedule 10 to that Act makes further provision in relation to transfers of property, rights and liabilities), and references in that Schedule as applied by virtue of this subsection to the transfer date are to the date of implementation of the proposals.

Marginal Citations

M1 1988 c. 40.

F1 202 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W

Textual Amendments

F1 S. 202 repealed (1.10.1998) by 1998 c. 31, s. 140(1)(3), Sch. 30, para. 70, Sch. 31 (with ss. 138(9), 144(6)); S.I. 1998/2212, art. 2(1), Sch. 1, Pt. I (subject to savings in S.I. 1999/2323, Sch. 7 paras. 2, 5, 6, 10, 12)

Effect of pending procedure for acquisition of grant-maintained status on property disposals, etc. E+W

F2 203 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W

Textual Amendments

F2 S. 203 repealed (1.10.1998) by 1998 c. 31, s. 140(1)(3), Sch. 30, para. 70, Sch. 31 (with ss. 138(9), 144(6)); S.I. 1998/2212, art. 2(1), Sch. 1, Pt. I (subject to savings in S.I. 1999/2323, Sch. 7 paras. 2, 5, 6, 10, 12)

204 Control of disposals of land. E+W

(1) During any period when the procedure for acquisition of grant-maintained status is pending in relation to a school, a local authority shall not—

(a) dispose of any land used wholly or partly for the purposes of the school, or

(b) enter into a contract to dispose of any such land,

except with the required consent.

(2) Subsection (1) does not apply in relation to a disposal which is made in pursuance of a contract entered into, or an option granted, before the procedure for acquisition of grant-maintained status was initiated in relation to the school.

(3) Where proposals for acquisition of grant-maintained status are approved, the procedure for acquisition of grant-maintained status is not to be treated as terminated for the purposes of this section and section 205 in relation to any land, where agreement is required to be reached under paragraph 2(1) of Schedule 10 to the M2 Education Reform Act 1988 (identification of property, etc.) on any matter relating to that land, until the date on which that matter is finally determined.

(4) In the case of a disposal made or contract entered into after proposals for acquisition of grant-maintained status have been approved, “the required consent”—

(a) (if it is agreed between the local authority and the new governing body that the value of the land in question does not exceed £6,000) is the consent of the new governing body, and

(b) (if paragraph (a) does not apply) is the consent of both the new governing body and the Secretary of State.

(5) In any other case “the required consent” for any proposed disposal (and for any contract to make it) is the consent of both the existing governing body and the Secretary of State.

(6) A disposal or contract shall not be invalid or void by reason only that it has been made or entered into in contravention of this section; and (subject to section 205) a person acquiring land, or entering into a contract to acquire land, from a local authority shall not be concerned to enquire whether any consent required by this section has been given.

(7) This section has effect notwithstanding anything in section 123 of the M3 Local Government Act 1972 (general power to dispose of land) or in any other enactment; and the consent required by this section shall be in addition to any consent required by subsection (2) of that section or by any other enactment.

(8) In this section and section 205—

(a) references to disposing of land include granting or disposing of any interest in land, and

(b) references to entering into a contract to dispose of land include granting an option to acquire land or such an interest.

(9) Where a proposed disposal forms part of a proposed series of transactions, all disposals forming part of that series shall be treated as one disposal for the purposes of this section.

(10) The Secretary of State may by order substitute for the sum specified in subsection (4) (whether as originally enacted or as previously amended by an order under this subsection) such sum as may be specified in the order.

Marginal Citations

M2 1988 c. 40.

M3 1972 c. 70.

205 Wrongful disposals of land. E+W

(1) This section applies where—

(a) proposals for acquisition of grant-maintained status in respect of a school have been approved, and

(b) a local authority have made a disposal, or have entered into a contract, in contravention of section 204(1).

(2) In the case of a contract which consists of granting an option to acquire any land or interest in land, the [F3 Education Transfer Council] may by notice in writing served on the option holder repudiate the option at any time before it is exercised.

(3) In the case of a contract to dispose of any land or to grant or dispose of any interest in land, the [F3 Education Transfer Council] may by notice in writing served on the other party to the contract, at any time before the conveyance or grant of the land or any interest in land to which it relates is completed or executed, repudiate the contract.

(4) A repudiation under subsection (2) or (3) shall have effect—

(a) where it is made after the date of implementation of the proposals, as if the local authority (and not the governing body) were party to the contract, and

(b) as if the repudiation were made by the local authority.

(5) In the case of a disposal which consists in granting or disposing of any interest in land (whether or not in pursuance of any earlier contract falling within subsection (2) or (3)) the [F3 Education Transfer Council] may be authorised by the Secretary of State to purchase compulsorily the interest in land which was the subject of the disposal.

(6) The M4 Acquisition of Land Act 1981 shall apply in relation to the compulsory purchase of land under subsection (5) as if references in sections 12 and 13 of that Act to every owner of the land included references to the local authority concerned.

(7) On completion of a compulsory purchase under that subsection of any interest in land, the [F3 Education Transfer Council] shall convey that interest to the governing body incorporated under Chapter II.

(8) Where the [F3 Education Transfer Council] acquire any interest in land by a compulsory purchase under subsection (5) the Board shall be entitled to recover from the local authority concerned an amount equal to the aggregate of—

(a) the amount of compensation agreed or awarded in respect of that purchase, together with any interest payable by the Board in respect of that compensation in accordance with section 11 of the M5 Compulsory Purchase Act 1965 or section 52A of the M6 Land Compensation Act 1973, and

(b) the amount of the costs and expenses incurred by the Board in connection with the making of the compulsory purchase order.

(9) Section 204(8) applies for the purposes of this section.

Textual Amendments

F3 Words in s. 205(2)(3)(5)(7)(8) substituted (1.10.1998) by 1998 c. 31, s. 136 (with ss. 138(9), 144(6)); S.I. 1998/2212, art. 2, Sch. 1 Pt. I

Marginal Citations

M4 1981 c. 67.

M5 1965 c. 56.

M6 1973 c. 26.

206 Control of contracts. E+W

(1) Where the procedure for acquisition of grant-maintained status is pending in relation to any school, this section applies to any contract which, if the proposals for acquisition of grant-maintained status were implemented, would or might bind the governing body incorporated under Chapter II.

(2) Except with the appropriate consent, a local authority shall not enter into a contract to which this section applies.

(3) In the case of a contract entered into after the proposals have been approved by the Secretary of State, “the appropriate consent” is that of the new governing body.

(4) In relation to any other contract, “the appropriate consent” is—

(a) the consent of the existing governing body, and

(b) if (on the assumption set out in subsection (1)) the contract will require the governing body incorporated under Chapter II to make payments amounting in aggregate to £15,000 or more, the consent of the Secretary of State.

(5) Any consent for the purposes of this section may be given either in respect of a particular contract or in respect of contracts of any class or description and either unconditionally or subject to conditions.

(6) A contract shall not be void by reason only that it has been entered into in contravention of this section and (subject to section 207) a person entering into a contract with a local authority or governing body shall not be concerned to enquire whether any consent required by this section has been given or any conditions of such a consent have been complied with.

(7) Where there is an obligation under a contract to which this section applies to provide any benefit other than money, subsection (4)(b) shall apply as if the obligation were to pay a sum of money corresponding to the value of the benefit to the recipient.

(8) This section does not apply to—

(a) a works contract (within the meaning of Part III of the M7 Local Government, Planning and Land Act 1980) which is entered into in accordance with section 7 of that Act,

(b) a works contract (within the meaning of Part I of the M8 Local Government Act 1988) which is entered into in accordance with section 4 of that Act,

(c) a contract to dispose of land (within the meaning of section 204) or to grant an option to acquire land or an interest in land, or

(d) a contract of employment.

(9) The Secretary of State may by order substitute for the sum specified in subsection (4) (whether as originally enacted or as previously amended by an order under this subsection) such sum as may be specified in the order.

Marginal Citations

M7 1980 c. 65.

M8 1988 c. 9.

207 Wrongful contracts. E+W

(1) This section applies where—

(a) proposals for acquisition of grant-maintained status in respect of a school have been approved, and

(b) a local authority have entered into a contract to which section 206 applies in contravention of that section.

(2) The [F4 Education Transfer Council] may by notice in writing served on the other party to the contract repudiate the contract at any time before it is performed.

(3) A repudiation under subsection (2) shall have effect—

(a) where it is made after the date of implementation of the proposals, as if the local authority (and not the governing body) were party to the contract, and

(b) as if the repudiation were made by the local authority.

Textual Amendments

F4 Words in s. 207(2) substituted (1.10.1998) by 1998 c. 31, s. 136 (with ss. 138(9), 144(6)); S.I. 1999/2212, art. 2, Sch. 1 Pt. I

208 Restriction on change of purpose for which property used or held. E+W

(1) During any period when the procedure for acquisition of grant-maintained status is pending in relation to a school, a local authority shall not, in relation to any land or other property of the authority used or held for the purposes of the school, take without the required consent any action by which the land or other property ceases to any extent to be so used or held.

(2) In the case of anything done after proposals for acquisition of grant-maintained status have been approved, “the required consent” is that of the new governing body.

(3) In any other case “the required consent” is that of both the existing governing body and the Secretary of State.

(4) If in the case of any school—

(a) proposals for acquisition of grant-maintained status are approved, and

(b) a local authority have, in relation to any property, taken any action in contravention of subsection (1),

the provisions relating to the transfer of property shall have effect as if, immediately before the date of implementation of the proposals in relation to the school, the property were used or held by the authority for the purposes for which it was used or held when the procedure for acquisition of grant-maintained status was initiated.

(5) In this section—

(a) “the provisions relating to the transfer of property” means section 201 above and section 198 of, and Schedule 10 to, the M9 Education Reform Act 1988, and

(b) the references to taking action include appropriating property for any purpose.

Marginal Citations

M9 1988 c. 40.

F5 209 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W

Textual Amendments

F5 S. 209 repealed (1.10.1998) by 1998 c. 31, s. 140(1)(3), Sch. 30, para. 70, Sch. 31 (with ss. 138(9), 144(6)); S.I. 1998/2212, art. 2(1), Sch. 1, Pt. I (subject to savings in S.I. 1999/2323, Sch. 7 paras. 2, 5, 6, 10, 12)

Supplementary E+W

210 Supplementary provisions about transfers. E+W

(1) No duty of a local education authority under section 60(2) or (as the case may be) 61(2) to convey their interest in any site or buildings to the trustees of a voluntary school shall be affected by the school subsequently becoming a grant-maintained school.

(2) Where such a duty is continued by virtue of subsection (1), then, in connection with the site in question, sections 60(2) to (7), 61(2) and (3) and 62 shall continue to apply after the school becomes a grant-maintained school as if it were a controlled school or, as the case may be, an aided or special agreement school.

(3) Where any such duty as is referred to in subsection (1), or imposed by section 70(1), applies in relation to a school, then—

(a) if it applies immediately before the date of implementation of proposals for acquisition of grant-maintained status, section 201(1)(a) shall not apply to, or to any interest in, the site or buildings or, as the case may be, the premises to be conveyed, and

(b) if it applies at a time when the procedure for acquisition of grant-maintained status is pending, section 204 shall not apply to disposing, or entering into a contract to dispose, of the site or buildings or, as the case may be, the premises to be conveyed.

(4) Where immediately before the date of implementation of proposals for acquisition of grant-maintained status there is an agreement relating to any site or buildings made under section 61(4) or (5), section 201(1)(a) shall not apply to any rights or liabilities of any local authority under the agreement; and any directions given before that date under section 61(6), so far as they relate to the governing body of the school, shall have effect on or after that date as if they related to the governing body incorporated under section 195.