Guidance

Changes to leasing agreements for maintained schools

Updated 20 January 2025

Applies to England

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This publication is available at https://www.gov.uk/government/publications/leasing-for-maintained-schools/changes-to-leasing-agreements-for-maintained-schools

What the changes mean for maintained schools

On 1 April 2024, a new international financial reporting rule (IFRS 16 leases) came into effect. This rule changes how local authorities record leases in the financial accounts of their maintained schools.

IFRS 16 leases end the distinction between operating and finance leases for accounting purposes. Under the Education Act 2002, all leases are now classed as borrowing and will require the Secretary of State for Education’s consent.

Governing bodies do not need to make a specific request for consent where a lease falls under the general consent granted by the Secretary of State for Education. The types of assets granted general consent is listed in ‘The IFRS16 Maintained Schools Finance Lease Class Consent 2024’.

Any leased assets not included in the document will need to be submitted to the Secretary of State for Education for consent. These may include leases relating to land and buildings – further guidance on land disposals is available.

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