Leasing for schools

Leasing can be a great way for schools to secure the equipment (and facilities) they need to provide students with a first-class education.
The Finance & Leasing Association (FLA), National Association of School Business Management (NASBM) and the Department for Education (DfE) have prepared this guide to help you ensure that where you do choose to lease equipment, you’re making the right choices for your school.

Leasing Guidance for Schools (PDF, 2.3 MB)

Finance leases are deemed to be borrowing and as such governing bodies may only take out a finance lease with the written permission of the Secretary of State.

Schools are allowed to enter into operating leases of equipment provided they are satisfied that those leases do not satisfy the test of being a finance lease. Schools must inform the LA via ifrsleases@gloucestershire.gov.uk when they propose to enter into any lease and confirm when they have entered the lease.

It is the advice of the LA is that schools should not enter into any lease without first checking with the LA as to what type of lease it would be. Providers of leases will often describe a lease as an operating lease when it is in fact a finance lease. The LA can therefore provide advice to a school before a lease arrangement is entered into as to the type of lease it is. Advice can be sought on this via ifrsleases@gloucestershire.gov.uk.

Schools are required to complete a return each year detailing the leases they have. Please see our IFRS Leases return page for details.