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3. (1) The classes or descriptions of local education authority expenditure specified in sub-paragraphs (a) and (b) below are hereby prescribed for the purposes of section 46(1) of the 1998 Act and the determination of a local education authority’s local schools budget subject to the exceptions in regulation 4—
(a)expenditure incurred in connection with the authority’s functions in relation to the provision of primary and secondary education; and
(b)expenditure on items listed in paragraph 27(a), (b), (d) and (r) to (t) of Schedule 1 in so far as such expenditure does not fall within sub-paragraph (a) above.
(2) For the purposes of this Part expenditure does not include expenditure defrayed by fees and charges collected by the governing body of a maintained school which are—
(a)specifically required or permitted to be collected by any provision of the Education Acts; or
(b)in respect of the use of school premises or equipment.
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