This statutory guidance is for local authorities.
Local authorities are required to publish schemes for
financing schools, setting out the financial
relationship between them and the schools they
maintain.
This guidance explains the provisions a scheme must
include.
Statutory guidance sets out what local authorities must
do to comply with the law.
We have updated the statutory guidance on schemes for
financing local authority maintained schools for the
2020 to 2021 financial year.
In the context of coronavirus (COVID-19), changes
have been kept to a minimum. However, the update
includes the extension of the risk protection
arrangement (RPA), an alternative to commercial
insurance for academies, to local authority
maintained schools from 1 April 2020. This was
confirmed in January.
We wanted to inform you that we have delayed the
publication of the Financial transparency of LA
maintained schools and academy trusts consultation
response due to the COVID-19 pandemic, so
there are no changes in the scheme relating to this.
We will provide more information on the publication
in due course.
Likewise, there are no changes relating to financing
and operating leases (IFRS16) that were due to come
into effect on the 1st April 2020. This has been
delayed for a year, also because of the pandemic.
During this unprecedented time we would fully expect
local authorities to exercise discretion on how and
when they implement some of the usual requirements
within their scheme for financing schools. Examples
for such use of discretion are deadlines set out in
the scheme such as the completion of the schools
financial value standard (SFVS) for the financial
year 2019 to 2020, and the submission by schools of
budgets for the 2020 to 2021 financial year which is
normally set for the end of May. In making such
decisions, local authorities should take full account
of the current pressures on themselves and their
schools.
We thank all local authorities for their continued
hard work to support the country and keep people safe
during this pandemic.
