(1)For the purposes of this section—
(a)“a policy development grant” is a grant to a represented registered party to assist the party with the development of policies for inclusion in any manifesto on the basis of which—
(i)candidates authorised to stand by the party will seek to be elected at an election which is a relevant election for the purposes of Part II, or
(ii)the party itself will seek to be so elected (in the case of such an election for which the party itself may be nominated); and
(b)a registered party is “represented” if there are at least two Members of the House of Commons belonging to the party who—
(i)have made and subscribed the oath required by the [1866 c. 19.] Parliamentary Oaths Act 1866 (or the corresponding affirmation), and
(ii)are not disqualified from sitting or voting in that House.
(2)The Commission shall submit recommendations to the Secretary of State for the terms of a scheme for the making by the Commission of policy development grants.
(3)Where the Secretary of State receives recommendations under subsection (2), he shall make an order setting out such a scheme in terms which, with any modifications he considers appropriate, give effect to the recommendations.
(4)The scheme shall, in particular, specify or provide for the determination of—
(a)the parties eligible for policy development grants, and
(b)how any money provided to the Commission for the making of policy development grants is to be allocated between the parties eligible for such grants.
(5)The Commission shall keep under review the terms of any scheme under this section and shall make recommendations to the Secretary of State for any variations to the scheme which they consider appropriate.
(6)Where the Secretary of State receives recommendations under subsection (5), he shall make an order giving effect, with any modifications he considers appropriate, to the recommendations.
(7)Where any such modifications as are mentioned in subsection (3) or (6) would result in an order under that subsection giving effect with modifications to any recommendations of the Commission in respect of either of the matters mentioned in subsection (4), the order shall not be made without the agreement of the Commission to the modifications so far as relating to those matters.
(8)The Commission shall make such grants as are provided for under any scheme under this section, and any such grants may be made subject to such conditions as (consistently with the terms of the scheme) the Commission consider appropriate; but nothing in such a scheme shall have effect to authorise the Commission to make in any financial year more than £2 million in policy development grants.
(9)The Secretary of State may by order made with the consent of the Treasury vary the sum for the time being specified in subsection (8).