In April the DFE changed the guidance for leasing for LEA schools and Academies, due to the implementation of IFRS16.
The changes have an immediate effect on LEA-maintained schools and Academies will also be included in September 2024.
The positive effect this will have cannot be understated.
What does this all mean?
In short, LEA Schools can now have finance leases, for the assets listed below, without having to get permission from the Secretary of State.
Benefits of a finance lease for schools:
- Master credit facilities.
- Deferral options (buy now, pay later).
- More flexibility on assets that can be financed.
- More flexibility on terms – can run from 1 to 5 years, or even longer depending upon the asset.
- No extended rentals.
- At the end of the lease title of the assets can be passed to a 3rd party e.g. PTA, or Board of Governors, for a one-off fee.
- Ability to settle early and plan upgrades.
- Ability to wrap up your existing lease portfolio into one rental – for ease of administration.
The asset classes listed are:
- IT equipment – Including Interactive Touchscreens
- Telephony
- Catering equipment &
- Cleaning equipment
- Furniture
- Bathroom/sanitary equipment
- Gym equipment
- Grounds keeping equipment
- Minibuses and other vehicles for the use of the school
- Temporary classrooms and equivalent structures
You will still be able to have Operating Leases. These will still be suitable where there is a short “shelf life” or a plan to upgrade every three years such as laptops or tablets.
If you know what you want, or need, call us and we can help finance it. Quotes can be provided quickly, and the paperwork is dealt with electronically, ensuring you get what you need quickly and without hassle.
We are always on hand to help. Just ring or email us and we will be able to answer any queries in the first call:
If you would like further information on the changes, please refer to the Gov.uk website below:
*All Quotes are subject to credit*
