§ Mr. Tom ArnoldTo ask the Secretary of State for Education and Science if he will outline the effect of the financial arrangements for the capital requirements of grant-maintained schools on the capital spending budget for the local education authority.
§ Mr. Alan HowarthMy right hon. Friend pays 100 per cent. grant to a grant-maintained school for approved expenditure on capital projects. There is no recovery of such payments from the local education authority. In addition, the Department sets annual capital guidelines for education for each LEA. These guidelines do not take account of capital grant to GM schools in an authority's area. It is for each LEA to decide capital spending on its schools in the light of local needs and circumstances, and LEAs are free, within the flexibilities of the Local Government Acts, to spend above the level of their annual capital guidelines from capital receipts and other resources.