Expenditure which is to be taken into account
5.—(1) The amount of the expenditure falling within Regulation 3(1)(a) which is to be taken into account for the purpose of these Regulations in any financial year is such sum as, after consultation pursuant to paragraph 8 of Schedule 10 to the Act, may be specified by the Secretary of State in the preceding year, together with such additional sums if any as he may, after like consultation, specify before the end of the financial year in question.
(2) The amount of the expenditure falling within Regulation 3(1)(b) which is to be taken into account for the purpose of these Regulations is—
(a)except as provided in sub-paragraphs (b) and (c) below, the full amount of any expenditure specified in Regulation 3(3)(g) which is attributable to tuition costs, at standard rates;
(b)subject to sub-paragraph (c) below, the full amount of any expenditure specified in Regulation 3(3)(g) which is attributable to tuition costs, at standard rates, in respect of the actual attendance at schools of travelling pupils;
(c)75% of any expenditure specified in Regulation 3(3)(g) which is attributable to special provision for travelling pupils, if the amount so calculated exceeds the amount which would otherwise be taken into account under sub-paragraph (b) above;
(d)the full amount of any expenditure specified in Regulation 3(3)(d)(i), less the amount of any rebates paid to the authority under section 104 of the Employment Protection (Consolidation) Act 1978(1);
(e)90% of any expenditure specified in Regulation 3(3)(d)(ii) or 3(3)(e);
(f)the whole of the other expenditure specified in Regulation 3(3).
Section 104 was amended by paragraph 6(3) of Schedule 2 to the Employment Act 1982 (c. 46) and by section 27 of the Wages Act 1986 (c. 48.).