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4.—(1) The provisions of Chapter III of Part I of the Education Reform Act 1988 shall apply to a new LEA in the financial years following the financial year commencing on the reorganisation date with the modifications set out below in this regulation and in regulation 7.
(2) Section 33 shall apply as if any reference to a county school maintained by a local education authority included a reference to a special school maintained by that authority.
(3) In section 34(4)(c)(ii) before the word “authority” there shall be inserted the word “transferor” .
(4) Section 40 shall not apply.
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