Conditions for payment of grant
7.—(1) The Secretary of State shall notify the authority in writing of —
(a)the maximum amount of expenditure to be incurred by the authority on training in each national priority area that will, subject to regulation 9, be eligible for grant at the higher rate, and
(b)the maximum amount of expenditure to be incurred by the authority on eligible training that will be eligible for grant at the lower rate
which maximum amount may, in any case, be nil.
(2) Where it appears to the Secretary of State that an authority does not expect to incur expenditure up to, or wishes to incur expenditure in excess of, a maximum amount notified under paragraph (1) the Secretary of State may, after consulting the authority, by notice in writing to the authority reduce or increase the maximum amount of expenditure so notified. A notice given under this paragraph shall, for the purposes of these Regulations, be deemed to be a notice of the maximum amount of expenditure to be incurred by the authority on training in the national priority area concerned under paragraph (1)(a) or on eligible training under paragraph (1)(b), as the case may be.