Paragraph 1

Subject to paragraphs 2 and 3, the total amount to be deducted from an authority’s schools budget (the “central expenditure”) in accordance with regulation 5 of these Regulations in order to arrive at their individual schools budget, shall not exceed (A - B) (or 0 if that is greater) + (C × D/E) where—

• A is the total amount of the schools budget for the financial year beginning on 1st April 2004 less the total amount of the schools budget for the financial year beginning on 1st April 2003, excluding any London Budget Support Grant paid by the Secretary of State to the authority under section 14 of the Education Act 2002,

• B is the schools block in the education element of the formula spending share for the authority for the financial year beginning on 1st April 2004 less the schools block in the education element of the formula spending share for the authority for the financial year beginning on 1st April 2003 ^f1,

• C is the total amount initially deducted from the authority’s schools budget in accordance with regulation 5 of the 2002 Regulations excepting that deducted in accordance with paragraphs 1 to 3 of Schedule 2 to those Regulations,

• D is the total amount of the individual schools budget as initially determined in accordance with regulation 5 of these Regulations together with the total amount of any funds devolved to schools from the standards fund grant and under the Excellence in Cities or Excellence Clusters programmes, and

• E is the total amount of the individual schools budget for the financial year beginning on 1st April 2003 as initially determined in accordance with regulation 5 of the 2002 regulations together with the total amount of any funds devolved to schools from the standards fund grant and under the Excellence in Cities or Excellence Clusters programmes,save that any grant paid by the Learning and Skills Council for England to the authority under section 7 of the 2000 Act shall be excluded from the calculation.