delete EXPENDITURE OF A CAPITAL NATURE
These Regulations, effective 31st March 1999, governed capital grants and special purpose grants from the Secretary of State to grant-maintained and grant-maintained special schools in England. They established which classes of expenditure could be funded, specified conditions attached to grant payments (including requirements that payments be used only for designated purposes, applied by specified dates, and repaid if incorrect assumptions were made), and provided the Secretary of State authority to impose accounting and audit requirements on recipient governing bodies. The regulations were largely transitional, operating alongside the ongoing unwinding of the grant-maintained schools programme following the 1998 School Standards and Framework Act.
This regulation is now entirely obsolete. Grant-maintained schools were phased out under the School Standards and Framework Act 1998, with most converting to foundation or voluntary schools. The regulatory framework it establishes has no active schools subject to it. Furthermore, the conditions imposed—requiring repayment if assumptions prove incorrect, restricting how grants may be applied, and mandating detailed audited accounts—create unnecessary administrative burden for any remaining transitional cases while serving no current policy purpose. The substantive policy objectives of school autonomy that grant-maintained schools represented have been superseded by later reforms.