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The Church of England Board of Education The Catholic Education Service VA representative bodies |
email:
sally.brooks@dfes.gsi.gov.uk 19 November 2003 |
THE
CAPITAL PROGRAMME FOR VOLUNTARY AIDED SCHOOLS
1. I am writing to
let you know about some actions we are having to take, with immediate effect,
to manage the capital programme for VA schools this year. I would be grateful if you could publicise
these actions through your regular mailings to Dioceses or members. We will put them on our Website (www.teachernet.gov.uk/voluntaryaidedschools) later
this week, and they will be reflected in our dealings with VA schools. You will also see that there are
implications for the coming year (2004-05).
2. The immediate
actions are detailed in the Annex to this letter. I think it would be helpful to explain why they have become
necessary. There are a number of issues,
and the details are given in the following paragraphs.
3. General
pressure on costs – we are, of course, aware of the scope for costs of
individual projects to increase. This
can happen for a number of reasons, usually as a result of building costs
inflation, or a wish to extend the scope of a project. But it has become clear that we simply
cannot afford to meet such increases on the same basis as in previous years.
4. Specific
pressures – we have found that, in particular, there has been an upward
drift on the cost of projects under the Excepted Buildings programme, either
because work may not have been covered by the scope of the condition surveys,
or work is costing more than expected.
Although we are committed to ensuring completion of this programme, once
again we simply cannot afford to increase allocations without there being some
impact on the total VA capital programme.
5. There is also a
particular issue in relation to Devolved Formula Capital grant. As you will be aware, schools can roll
forward their entitlement for up to three years. The Department, however, does not have a similar flexibility – we
are under pressure to ensure that all available grant is spent in the year in
which it is available. Apart from
having to take action this year, in response to information we obtained from
schools earlier in the autumn, it is clear that we cannot allow the current
arrangements to continue. We are,
therefore, looking at ways in which to simplify the way in which we administer
this grant. I hope that those changes
will have benefits for all of us.
6. There have also
been some other recent developments which have a bearing on the overall shape
of the VA capital programme, and which will require us to maintain a
contingency reserve from next year.
They are:
· decisions
taken to clarify the premises insurance requirement for VA schools, with the
logical outcome that the Department can face unexpected calls on our budget,
and some could be very large; and
· the
recently-announced policy on successful and popular schools, which will require
us to meet the associated costs throughout each year from now on.
7. I realise that
this will not be welcome news, but it is necessary to take action now to
prevent the programme from over-spending this year, and also across the whole
of the current Spending Review period.
This has become clear as a consequence of our formal mid-year review of
the VA capital programme.
8. You will be able
to gather that we will have to plan to maintain a balance next year. One of the key areas in which changes can be
made relatively quickly is LCVAP. We are
due to announce formal allocations of all formulaic capital programmes for the
next two years for all sectors around mid-December this year. I appreciate that you will previously have
received indicative figures for next year, but I am sure that you will
understand the need for revision in the light of the information in this
letter. Subject to Ministerial
agreement, we may defer until February the formal notification of final VA
allocations. This will enable us to get
a better picture of the rate of spending this current year. We will also have to maintain a firm
approach on issues such as requests for increased allocations, which will also
help maintain equitable treatment across the whole of the VA sector.
9. If you have any
queries, please get in touch with Paul Skuce in the VA Capital Team, by email
at paul.skuce@dfes.gsi.gov.uk
or by telephone on 01325 392173. VA
schools will be asked to contact their usual contact member of staff in the VA
Team.
SALLY BROOKS
Divisional Manager
School Capital and Buildings
ANNEX
LCVAP - Projects
· We will
not approve any new projects which were not on the last received agreed LEA list
of projects. If no list has been
received we will not approve any projects.
· Projects which
have been listed need to be received by us by Friday 19 December.
· Any
projects that are received after that date, and that are on an existing list,
will be give the option of either being approved but will need to be phased
into 2004-05, or can be dropped.
· We will not
accept any new project lists with immediate effect.
· No increased
costs will be approved for LCVAP projects in the current year beyond any
allocation that has already been agreed, except for tender price indices (TPI)
increases.
· Any
unforeseen increases (outside of TPI) can be phased into 2004-05 as a
commitment against LCVAP.
Devolved Formula Capital
· Any DFC
approvals that have already been received will be processed and approved/paid
in the usual way.
· If any new
projects are received, they will only be approved if the school has already
told us that it intends to claim this year, and the amount requested is within
the amount they have indicated to us.
If the project exceeds that amount we will phase it into 2004-05, with
their agreement, or reduce the cost to the amount shown in the notification.
· If a
project approval is received, and we have not been notified of an intention to
claim, then it will not be approved.
· Where a
school could lose money under the three-year rule, whether or not we have received
a notification of intention to claim, we will handle any approval in the usual
way but only pay this year the amount the school would lose under the three-year
rule. Any balance would be funded in 2004-05.
· If this
proved to be totally unworkable then we would discuss any alternative approach.
· We cannot
approve requests to claim grant in respect of future years’ allocations.
Major capital projects
· We will
not be able to approve any increases to existing allocations.
Excepted Buildings
· Project
approvals already received will be progressed in the usual way.
· Any new
approvals for funding this year must be received by 19 December.
· Any approvals
received after that date will be given the option of proceeding with the
approval but with the funding phased into 2004-05, or can be resubmitted at a
later date.
· Increases
to any existing allocations cannot be approved.
Projects with a mix of funding
· Any project
which involves LCVAP funding will not be approved if it is not on the most
recent list submitted by the LEA.
· Any LCVAP approval
which includes DFC and is on the LEA’s LCVAP list, and the school has told us
that they intend to claim their DFC this year, will be accepted up until 19
December. If the DFC element includes
an amount that would be lost under the three-year rule then that amount of DFC
can be claimed this year. Any other DFC
will be paid in 2004-05.
End.