How maintained schools in the United Kingdom access leasing arrangements has changed.
From 1st April 2024, International Financial Reporting Standards (IFRS) 16 applies to schools wholly owned and maintained by Local Authorities (maintained schools) in England and Wales.
What does this mean?
The Government published the following guidance: Leasing for maintained schools - GOV.UK
From 1st April 2024, this simplified how local authorities recognise leases in their accounts for maintained schools by classifying all leases as borrowing, providing schools with greater flexibility in leasing equipment, giving them access to finance leases.
From 1st September 2024, leasing arrangements for academy trusts will change to provide the same flexibilities as maintained schools to enter into certain leases without prior Secretary of State for Education approval.
Why is this important?
The introduction of IFRS 16 improves the planning and budgeting process for UK schools and academies. These now have increased control of their finances and can make efficient choices of how to access equipment that suits their needs. Governing bodies of maintained schools no longer need to make a specific request for consent to the Secretary of State for Education for certain assets including:
A full list of assets can be found in the document titled “The IFRS 16 Maintained Schools Finance Lease Class Consent 2024”. For any leased assets not listed in this document such as leases related to land and buildings, schools must submit them to the Secretary of State for Education for consent.
How can DLL help?
We can help your school or academy access the very latest equipment. Our tailored solutions help you control costs whilst optimising the usage of capital assets and expenditure. With DLL you can benefit from:
- Greater freedom to budget efficiently for investments such as headcount and improvements.
- Customised lease terms such as tailoring payments to term dates.
- A straightforward application process
- Equipment upgrades - at the end of the lease, you can return the equipment and replace it with newer, more efficient models.
- Safe, secure disposal at the end of the lease.