32Education expenditure and rate support grant
(1)Part I of Schedule 2 to the Local Government Act 1974 (adjustment of needs element of rate support grant by reference to education and other expenditure) shall be amended in accordance with Schedule 6 to this Act.
(2)Regulations under sub-paragraph (4) (a) of paragraph 3 of the said Schedule 2 as amended by this section shall apply that paragraph to—
(a)expenditure incurred by local education authorities in the making of provision for primary and secondary education in respect of pupils not belonging to the area of any local education authority or to the area of any education authority in Scotland; and
(b)expenditure, other than that to which paragraph 3A of that Schedule applies, incurred by local education authorities in the making of provision for further education in respect of such pupils.
(3)Regulations under sub-paragraph (4)(a) of paragraph 3 of the said Schedule 2 as amended by this section may be made with retrospective effect to 1st April 1977 insofar as they apply that paragraph to expenditure in making payments to persons who, in consequence of a direction given by the Secretary of State under regulation 3(2) of the [S.I. 1975/1054.] Further Education Regulations 1975, have ceased to be employed in colleges for the training of teachers or in institutions having a department for the training of teachers, being—
(a)payments made by an authority as compensating authority under the [S.I. 1975/1092.] Colleges of Education (Compensation) Regulations 1975; or
(b)the amount by which the salary to which such a person is entitled under a document such as is mentioned in section 5(2) of the [1965 c. 3.] Remuneration of Teachers Act 1965 exceeds the salary which would normally be appropriate to the post held by him.
(4)Without prejudice to subsection (3) above, regulations made by virtue of this section under the said Schedule 2 may be made so as to have effect from 1st April 1980 and in relation to regulations made as respects the year beginning on that date under paragraph 3A(2)(a) of that Schedule that paragraph shall have effect as if the words " in advance for each year " were omitted.