(1)Where—
(a)proposals for the establishment of a school are submitted to the Secretary of State under section 41(1),
(b)no application is made under section 48 for an order directing that the school shall be an aided school, and
(c)the persons submitting the proposals and the local education authority satisfy the Secretary of State that subsection (3) below applies,
the Secretary of State may by order direct that the whole or a specified part of the promoters’ expenses of establishment shall be defrayed by the local education authority.
(2)In subsection (1) “the promoters’ expenses of establishment” means so much of the cost incurred in establishing the school as would, but for the order, fall to be defrayed by the persons who establish it.
(3)This subsection applies if the establishment of the school is required for the purpose of providing accommodation for pupils for whom, or for a substantial proportion of whom, accommodation would have been provided in some other school—
(a)which is or was a voluntary school, or
(b)which is or was a grant-maintained school, having been a voluntary school immediately before it became grant-maintained,
if that other school had not been discontinued or had not otherwise ceased to be available for the purpose.