2In paragraph 3 for sub-paragraphs (4) and (5) there shall be substituted—
“(4)Subject to sub-paragraph (5) below, this paragraph applies to such expenditure as may be specified by regulations made by the Secretary of State, being—
(a)expenditure, other than that to which paragraph 3A below applies, incurred by local authorities in the exercise of their functions as local education authorities ;
(b)expenditure incurred by local authorities on research into any of their functions, in the training of persons in matters connected with the functions of local authorities or in respect of persons to whom the training is given.
(5)Regulations specifying expenditure of any description under sub-paragraph (4) above may provide that only a specified proportion of that expenditure shall be expenditure to which this paragraph applies.”