Item 9 THE BEAUFOY TRUST
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Executive portfolio:
Report by: Executive Director Corporate Services
160/05-06
Corporate Committee
06.09.2005
Executive Summary
This report provides the Corporate Committee with legal advice in relation to their responsibilities in discharging the Council’s role as trustee of the Beaufoy Trust and recommends that the Beaufoy Institute building be sold.
Recommendations
1) That, subject to the consent of the Charity Commission, the Beaufoy Institute building be sold.
2) That the two separate trusts, namely the Beaufoy Institute and Beaufoy Scholarship Fund be amalgamated and the objects modernised to meet present day needs.
Funding
There are no funding implications.
[table of consultees deleted as formatting lost in cut and paste from pdf]
Report History
Drafted on: 18.08.05
Deadline: 23.08.05
Date sent: 31.08.05
Date Published 02.09.05
Drafted by and contact for enquiries:
Peter Flockhart, Senior Planning Solicitor
020 7926 3051
pflockhart@lambeth.gov.uk
1. Context
1.1 The Beaufoy Trust was set up in 1909 and consists of two parts:
• The Beaufoy Institute and
• The Beaufoy Scholarship Fund
1.2 The Beaufoy Institute was originally administered by London County Council as trustees “for the purposes of the conduct by them in the premises thereof of an institution…for the education of young persons of either sex belonging to the poorer classes with a preference to such of them as are resident in the Metropolitan Borough of Lambeth. The Institute shall be known as the Beaufoy Institute and shall include a Day School, conducted in such a manner as to be eligible for recognition by the Board of Education under the Board’s Regulations for Technical Schools, for the training of boys, who belong to the poorer classes and who have been in attendance at a Public Elementary School, in subjects of technical and manual instruction before entering upon the practice of their trades.”
1.3 Additional property was acquired in the 1920s and 1930s by the London County Council, which forms an annex and the remainder of the complex. This additional land and property is not subject to the trust. [Lang Rabbie emphasis]
1.4 Lambeth Borough Council acquired the property in 1992 from the London Residuary Body and holds the original Institute building as trustee for the purposes of the trust as set out above. The remainder of the site is held by the LEA. The Council’s obligations as Trustee are discharged through the Corporate Committee.
1.5 The Beaufoy Institute land was transferred to Lambeth by the Education (London Residuary Body) (Transfer of Functions and Property) (No2) Order 1992:
4(3) all interests of the LRB in the Beaufoy Institute shall vest on the transfer date in the Council of the London Borough of Lambeth and shall be held by that Council upon the trusts applicable thereto by virtue of a scheme made on 20July 1909 by the Board of Education under the Charitable Trusts Acts 1853 to 1894
Strictly speaking this is not a restrictive covenant but it has the same effect in that no transactions can take place that affect the land without observing the terms of this statutory instrument.
2. Detailed Analysis and Reason
2.1 It has been recognised for some time that the objects of the trust would be difficult, if not impossible, to fulfill. An order of the Charity Commission is needed to change the objects. In September 2002 the Charity Commission confirmed that, in principle, it would be willing to make a scheme that would allow the Council to use the property for wider educational purposes.
2.2 The Commission would need to ensure that any amendment of the charity’s objects was made on a cy-pres basis, ie as near as possible to the original intention of the charity.
2.3 The Commission have indicated that they are unlikely to agree to the use of the premises for a wider community use where a need for education can still be identified. That would not however preclude the non-trust land being used for community purposes. Further if a school were to be relocated on the trust property the school could offer community facilities or use.
2.4 The trust property is the original Institute building and not the remainder of the site which is not part of the trust. The Council is free to use that part of the site for whatever purpose it considers appropriate, subject to any necessary planning consents. Decisions as to the future of the non-trust property rest with the Executive and consequently the Corporate Committee will need to make its views on the trust property known to the Executive so that decisions can be taken in relation to the whole site.