Judge grants permission for BSF judicial review hearing

Six local authorities have been granted permission for a full hearing over the way the government stopped funding for Building Schools for the Future projects.

The action is being brought by Nottingham City Council, Luton Borough Council, the London boroughs of Newham and Waltham Forest, Sandwell Metropolitan Borough Council and Kent County Council.

Mr Justice Langstaff last week ruled that the claims raised arguable issues. A date and venue for the hearing will be agreed at a case management conference today [6 December], but it is expected that the case will be heard in January 2011.

In Nottingham's case, the council claimed that Education Secretary Michael Gove’s decision on 5 July 2010 was contrary to its legitimate expectation that funding would be forthcoming for Top Valley School, Top Valley Learning Centre and Trinity School. It pointed out that the outline business case for the three schemes had been approved in February 2010.

Nottingham also said the Secretary of State’s decision was irrational, with an arbitrary cut-off date of 1 January 2010 for stopping BSF funding.

It lodged papers at the Leeds Administrative Court in October requesting permission for a judicial review hearing.

Cllr David Mellen, Nottingham's portfolio holder for children's services, said: "We are requesting that Michael Gove's decision to stop the funding for Top Valley School, Top Valley Learning Centre and Trinity School is quashed and that the funding previously agreed continues. I am pleased that the judge supports our application for a JR and remain confident that we have a strong case.”

Luton’s action relates to two projects that would have cost £45m. The council was just seven weeks away from the start of construction; it said late cancellation left it with estimated liabilities of £3.6m for the abortive work already done.

Cllr Tahir Khan, Luton’s executive member with responsibility for children's services, said the council believed it had a strong case.

“Luton Borough Council welcomes this decision as we believe we have a strong case. This legal action was taken reluctantly, and only after having failed to find a way forward from our correspondence with the Department for Education.

"We are not disputing the Secretary of State's right to make a decision to withdraw funding for the Building Schools for the Future programme but we believe the decision reached was irrational and that our individual circumstances were not taken into account. Our priority is to protect the interests of our local schools, young people and residents."

A Department for Education spokesman said: "The Secretary of State will continue to defend vigorously the cases brought against him."