# The Service Subsidy Agreements (Tendering) (England) (Amendment) Regulations 2004, Regulation 4: Amendment of the Service Subsidy Agreements (Tendering) (England) Regulations 2002


(1) Regulation 3 (exclusions from section 89(1) of the Transport Act 1985) is amended as provided in paragraphs (2) and (3).
(2) For paragraph (1) substitute—
“(1) This regulation applies to service subsidy agreements that are made at a time when an authority’s forecast expenditure for the current financial year does not exceed £600,000.
(1A) Subject to paragraphs (2), (3), (4) and (5), where this regulation applies there are excluded from section 89(1) of the Act the following service subsidy agreements—
(a) any agreement which will remain in force for less than 12 months and under which the aggregate amount of service subsidies does not exceed £29,999, and
(b) any agreement which will remain in force for 12 months or more and under which—
(i) the aggregate amount of service subsidies payable during the period of 12 months starting on the date that the agreement comes into force does not exceed £29,999, and
(ii) the aggregate amount of service subsidies payable during any subsequent relevant year (or part of a year) it is in force cannot exceed £29,999,
(where a “relevant year” is a period of 12 months commencing on an anniversary of the date on which the agreement came into force).”
(3) For paragraph (2) substitute—
“(2) This regulation shall not exclude from section 89(1) of the Act any agreement whose effect is to modify an agreement which is within the scope of paragraph (1) so that—
(a) where the modified agreement will remain in force for less than 12 months after the date on which the modification takes effect, the aggregate amount of the service subsidies payable in the twelve month period ending on the date that the agreement ceases to be in force is increased to £30,000 or more; or
(b) where the modified agreement will remain in force for 12 months or more after the date on which the modification takes effect—
(i) the aggregate amount of the service subsidies payable during the period of 12 months after the date on which the modification takes effect is increased to £30,000 or more, and
(ii) the aggregate amount of service subsidies payable during any subsequent relevant year (or part of a year) it remains in force is increased to £30,000 or more,
(where a “relevant year” is a period of 12 months commencing on an anniversary of the date on which the modification took effect).”
(4) In paragraph (3)—
(a) for “paragraphs (1) and (2)” substitute “paragraphs (1A) and (2)”, and
(b) in sub-paragraph (b), for “in any period of 12 months after the first such period” substitute “at any time after the first period of 12 months”.
(5) After paragraph (4), insert—
“(5) This regulation shall not exclude from section 89(1) of the Act any service subsidy agreement that will remain in force for a period exceeding 5 years.”

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Source: https://www.legislation.gov.uk/uksi/2004/609/regulation/4 (the official version)
Page: https://openlegislation.uk/service-subsidy-agreements-tendering-england-amendment-regulations-2004/regulation-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.