§ Mr. Fallon
Today we are publishing departmental circular 7/91, which sets out new guidance for local education authorities on the local management of schools. The measures contained in the circular reflect our determination to ensure that schools become more independent of their LEAs.
Local management of schools will be extended as follows:any school may apply for delegated management from April 1992;all schools must have delegated management by April 1994;by April 1993, 85 per cent. of the potential schools budget must be delegated to the school level which, on 1990–91 figures, will release a further £140 million to our schools;by April 1993, 80 per cent. of those delegated funds must be linked directly to pupil numbers, weighted for age and special needs;special schools will be able to apply for delegated management from April 1994, by which time local authorities must have introduced formula funding for all special schools.
To ensure that schools have the necessary flexibility efficiently to manage their budgets, we intend to require local education authorities to allow all secondary schools to operate their own bank accounts.
Copies of the circular are today being placed in the Library of the House.