Part 12: Miscellaneous Section 235: Transfer of land by local authorities Effect
Subsection (1) of the section inserts the new paragraph 9A into Part 1 of Schedule 1. Paragraph 9A has the following effects:
Sub-paragraph (1) sets out the circumstances in which the new arrangements apply.
The four conditions (Conditions A to D) set out in sub-paragraphs (2) to (5) must all be met.
	Condition A (sub-paragraph (2)) is that the local authority are providing premises for an academy school. Typically, a local authority may do so where it has been locally agreed that it is advantageous for an academy to relocate to a new site for example, in order that the academy can expand or because its current buildings are no longer suitable and the local authority are willing to provide new premises on that site.
	Condition B (sub-paragraph (3)) is that the premises being provided are alternative premises for the academy school or for an academy, sixth form college, or maintained school the academy school is to replace e.g. as a result of a merger of institutions.
	Condition C (sub-paragraph (4)) is that the existing premises are held by site trustees.
	Condition D (sub-paragraph (5)) is that the site trustees are prepared to pay the local authority the proceeds of sale of the existing premises in exchange for the new premises. The sum paid should be just when compared with the value of the interest the local authority are transferring but should not exceed the total of the proceeds of sale plus any interest on those proceeds. Alternatively, the site trustees may transfer their interest in the existing premises to the local authority if the authority agree. Since the paragraph only applies where conditions A to D are all met, site trustees could decide to retain the current site in order to use it for other charitable purposes if the terms of the trust under which the land is held are wide enough, or if they are able to agree this with the Charity Commission. If however they were to do so, the local authority would no longer be under the duty to transfer the new site.
Where all four conditions are met, sub-paragraph (6) requires the local authority to transfer their interest (which will usually be a freehold) in the new premises to the site trustees. The intended effect is that a local authority will receive either cash or land in exchange for transferring the new premises, and the trustees will not have to surrender their interest in their existing land without receiving the new premises in return. This ensures that the existing charity will be preserved, and the trustees will continue to hold land for the academy school or one that is replacing existing institutions.
Sub-paragraph (7) requires the local authority to pay the site trustees’ costs in connection with the transfer e.g. legal or other professional fees. The costs must be reasonable.
Sub-paragraphs (8) to (10) contain provisions for either the local authority or the site trustees to refer matters relating to the transfer to the schools adjudicator in the event that they cannot reach agreement. These matters include issues such as the extent of premises to be transferred by the authority to the site trustees; the amount to be paid by the site trustees from proceeds of sale or any interest accrued on those proceeds; and the identity of site trustees. Sub-paragraph (10) places the local authority and site trustees under a duty to provide any information the adjudicator requests in connection with the transfer.
Sub-paragraph (11) relates to sites provided under the School Sites Act 1841. Section 2 of that Act enables a landowner to provide a site for a school or other educational purposes under a statutory charitable trust. It also provides that, if the land ceased to be used for the school (or the other purposes), it would revert to the donor or heirs by operation of law, although section 1 of the Reverter of Sites Act 1987 has now replaced statutory reverter with a statutory trust of the net proceeds of sale of the land for the donor or heirs. Section 14 of the 1841 Act allows such a site to be sold or exchanged and any money arising from such a sale or exchange to be applied in the purchase of a new site for the school (without triggering reverter). Sub-paragraph (11) provides that payment by trustees of any proceeds of sale to the local authority under sub-paragraph (5)(a) is to be treated as a sum applied in the purchase of a site for the school under section 14 of the 1841 Act. The intention is to avoid statutory reverter or a statutory trust arising under the Reverter of Sites Act 1987.
Sub-paragraph (12) makes clear that the land the local authority must transfer to the site trustees excludes playing fields.
	Subsections (2) to (4) make consequential amendments to the School Standards and Framework Act 1998 (’SSFA’):
Subsections (2) and (3) of the section amend section 25 of, and Schedule 5 to, the SSFA, which make provision for the appointment and role of schools adjudicators. They insert a reference to the new paragraph 9A, in order to extend the adjudicators’ role to cover the function of resolving disputes over these statutory transfers.
Paragraph 5 of Schedule 22 to the SSFA includes a requirement that if site trustees of a closing school hold land acquired or enhanced in value at public expense by, for example, a local authority or the Secretary of State. they must apply to the Secretary of State for a decision on what should happen to the land once the school has closed. If closure is to enable the school’s merger with another institution to form a new academy, new paragraph 9A may apply if the local authority are providing new premises for that academy and the site trustees have already agreed that the land they hold will be sold and proceeds given in exchange for a transfer to them of the new premises. If so, the requirement in paragraph 5 of Schedule 22 to the SSFA for the site trustees to apply to the Secretary of State for a decision on what should happen to the land of the closing school is not needed. Subsection (4) therefore disapplies paragraph 5 of Schedule 22 if paragraph 9A applies (but not otherwise).