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(1)The principles set out in subsections (2) and (3) below shall apply to all authorities belonging to the appropriate class.
(2)Where an authority's total expenditure is at a level equal to or less than their grant-related expenditure, a given decrease in their total expenditure must produce the same decrease in their grant-related poundage as would be produced by the same decrease in their total expenditure if it were at any other level which is less than their grant-related expenditure.
(3)Where an authority's total expenditure is at a level equal to or more than their grant-related expenditure, a given increase in their total expenditure must produce an increase in their grant-related poundage not less than the increase that would be produced by the same increase in their total expenditure if it were at any lower level.
(4)References in this section to an increase or decrease in grant-related poundage are references to an increase or decrease in absolute terms.
(5)References in this section to an increase or decrease in an authority's total expenditure may be construed either as references to an increase or decrease in absolute terms in their expenditure per head of the population of their area or as references to an increase or decrease in the ratio between their total expenditure and their grant-related expenditure; but such references shall be construed in the same way in relation to all authorities.
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