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11.—(1) This paragraph applies in the case of a school which becomes a grant-maintained school on or after 1st April in the financial year in question if, in a previous financial year (before becoming grant-maintained), the school had a delegated budget under a scheme made by the relevant authority.
(2) In any case to which paragraph (1) applies, the Secretary of State shall determine an amount in accordance with paragraph (3).
(3) The Secretary of State shall determine an amount which it appears to him is equal to that amount of the school’s budget share for any financial year prior to the financial year in question in respect of which sums had neither been deducted by the relevant authority in accordance with their scheme nor made available pursuant to section 36(2) and (3) of the 1988 Act, or, if made available, had not been spent by the governing body in exercise of their powers under section 36(5) of that Act.
(4) This paragraph applies in the case of a school which becomes a grant-maintained school on 1st April in the financial year in question if, immediately before becoming a grant-maintained school, the school had a delegated budget under a scheme made by the relevant authority.
(5) Where paragraph (4) applies, and the Secretary of State is satisfied that the school’s budget share for the preceding financial year was less than the aggregate of the sums which, in respect of that financial year, were either—
(a)sums deducted by the relevant authority in respect of the school’s budget share in accordance with their scheme; or
(b)sums spent by the governing body of the school (before becoming grant-maintained) in the exercise, or purported exercise, of their powers under section 36(5) of the 1988 Act,
he may determine as an amount to be deducted from the amount determined in respect of the school under regulation 4(1), such amount as he is satisfied it is fair and reasonable should be so deducted having regard to the amount which the relevant authority could have deducted in such a case in determining the school’s budget share for the financial year in question had the school not become a grant-maintained school.
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