6. Section 6 of the 1974 Act (Supplementary grants for transport purposes) shall be amended as follows:
(a)in subsection (1) for the words from “to county councils” to the end of the subsection there shall be substituted—
“(a)to county councils in England and the Greater London Council in respect of their estimated expenditure in connection with—
(i)highways and
(ii)the regulation of traffic, and
(b)to county councils in Wales in respect of their estimated expenditure in connection with—
(i)public transport
(ii)highways and
(iii)the regulation of traffic
and in this section “transport matters” means,
(b)in subsection (2) after the words “for the purposes of this section” there shall be inserted the words “as it applies in Wales”;
(c)in subsection (4) the words “in England”, and “the extent (if any) to which” and from “exceeds a level” to the end of the subsection shall be omitted;
(d)subsection (4A) shall be omitted; and
(e)for subsections (5) and (5A) there shall be substituted—
“(5) For the purposes of subsection (4) above—
(a)the Secretary of State may treat the estimated expenditure of the London borough councils and the Common Council of the City of London in connection with transport matters as forming part of the estimated expenditure in connection with those matters of the Greater London Council;
(b)the Secretary of State may treat the estimated expenditure of a district council in connection with transport matters as forming part of the estimated expenditure in connection with those matters of the council of the county in which that district is situated; and
(c)“accepted”, in relation to the estimated expenditure of a council, means
and in making a determination under paragraph (c) above, in relation to the estimated expenditure of a council, the Secretary of State shall have regard to the progress which appears to him to have been made by the council in formulating and implementing suitable policies to meet the needs of their area in connection with transport matters.”.