Education (Grants and Awards) Act 1984

2 Limit on expenditure approved for grant purposes.

(1) The aggregate amount of the expenditure of local education authorities in England and Wales approved for any financial year by the Secretary of State in pursuance of section 1(3)(a) above shall not exceed 0.5 per cent. of the amount determined by him for that year in accordance with this section.

(2) For each financial year the Secretary of State shall by regulations determine for the purposes of this section an amount representing the aggregate amount of expenditure for or in connection with educational purposes which it would in his opinion be appropriate for local education authorities in England and Wales to incur in that year, excluding—

(a) expenditure under section 1(1) of the [1962 c. 12.] Education Act 1962 (awards for university and comparable courses) or in pursuance of section 2(3) of that Act (grants to persons undergoing training as teachers);

(b) prescribed expenditure as defined by or by virtue of Schedule 12 to the [1980 c. 65.] Local Government, Planning and Land Act 1980 (expenditure of a capital nature); and

(c) such other heads of expenditure (if any) as appear to the Secretary of State to be appropriate to be excluded in relation to that year.

(3) Regulations under this section may determine an amount for a financial year for the purposes of this section either—

(a) by specifying it; or

(b) by providing for it to be ascertained by reference to an amount or amounts specified or to be specified in any Rate Support Grant Report made for that year under section 60 of the said Act of 1980.

(4) Any regulations made in pursuance of subsection (3)(a) above shall relate to one financial year only ; and in arriving at the amount to be specified for a financial year by any such regulations the Secretary of State shall have regard to the matters mentioned in paragraphs (a) to (d) of section 54(4) of the said Act of 1980 so far as relating to expenditure for or in connection with educational purposes or to educational services in England and Wales.

(5) Any regulations made in pursuance of subsection (3)(b) above may determine an amount for the purposes of this section for each one of a number of financial years.

(6) Regulations under this section shall be made before the beginning of the financial year to which they relate or, if they relate to two or more financial years, before the beginning of the first of those years.