Paragraph 2

The Secretary of State shall determine an amount which is equal to that part of the relevant authority’s planned financial provision for their relevant schools included in their general school’s budget for the financial year in question which, in his opinion, would remain after deducting—

(a)

the authority’s planned financial provision for their relevant schools included in their aggregated budget;

(b)

their planned expenditure in respect of their relevant schools on those descriptions of expenditure listed in paragraph 2 of Schedule 2;

(c)

an amount representing, or approximating to, the expenditure which the authority will incur in respect of the provision of free school meals calculated by the application of the following formula—

F \times P \times 190

where—

F represents the matter denoted by that letter in regulation 10(3); and
P is the number of registered pupils in receipt of free school meals at the authority’s relevant schools on a date determined by the Secretary of State; and

(d)

the amount (if any) appropriated by the authority for meeting expenditure on contingencies in respect of their relevant schools.

Provided that in determining the amounts under sub–paragraphs (b) to (d) the Secretary of State shall exclude any such expenditure, or, in the case of sub–paragraph (d), any amount appropriated or allocated by the authority for meeting expenditure referred to in that sub–paragraph, falling within their aggregated budget.