1. Subject to paragraphs 2 and 3, the central expenditure for funding period 1 must not exceed A × (B/C) where—
(a)A is the lower of either—
(i)the total amount initially deducted from the authority’s schools budget for the financial year beginning on the 1st April 2005, or
(ii)the total amount that could have been deducted from the authority’s schools budget under the Budget Regulations as if those regulations had not been amended(1),
excepting any amount deducted in accordance with paragraphs 1 to 4 (Expenditure to support grants, Excellence in Cities, Performance Reward and Threshold and Performance Pay Grants), 32 (Expenditure without which the education of pupils would be seriously prejudiced) and 34 (Expenditure authorised by the Secretary of State and for correction of errors) of Schedule 3 to the Budget Regulations;
(b)B is the total amount of the individual schools budget for funding period 1 as initially determined in accordance with regulation 7 of these Regulations;
(c)C is—
(i)the total amount of the individual schools budget for the financial year beginning on 1st April 2005 allocated in accordance with regulation 4 of the 2004 Regulations, except for any amount retained under regulation 5(2) for the purpose of redeterminations or correction of errors, plus
(ii)where the authority have not deducted expenditure under paragraph 3 of Schedule 2 to these Regulations in respect of funding period 1, any expenditure deducted under paragraph 4 of Schedule 3 to the 2004 Regulations, to the extent that this was devolved to schools;
save that any grant paid by the LSC to the authority under section 7 of the 2000 Act must be excluded from all the calculations.
The Budget Regulations were amended by the LEA Budget, Schools Budget and Individual Schools Budget (Amendment) (England) Regulations 2005 (S.I. 2005/526).