The Targeted Capital Fund is a new initiative introduced in 2001-02 by DfES.  It replaces previous Surplus Place Removal programmes with the focus upon schemes which produce financial and educational gain.

Gains must be targeted, measured and evaluated. Projects which are not Surplus Place Removal could be, for instance, based upon Asset Management Plan suitability assessment data.

Local authorities are able to make no more than 2 proposals each year with a minimum cost of £250,000 for the authority, or if for a single school, three times the devolved capital allocation with a maximum value of £5 million.