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8.—(1) The amount by which the block grant payable to each authority for any financial year shall be increased or decreased in pursuance of paragraph 6(2) or 5(2) of Schedule 10 to the Act shall be the amount by which the allowable expenditure of that authority within the meaning of paragraph(2)(a) or (b) below for that year exceeds or falls short of its share under Regulation 6 of the expenditure falling to be taken into account in pursuance of Regulation 5(1) or (2), as the case may be.
(2) For the purpose of this Regulation the allowable expenditure of each authority is—
(a)as regards expenditure falling within Regulation 3(1)(a) the amount determined by the Secretary of State as its apportioned share in accordance with Regulation 7(a);
(b)as regards expenditure falling within Regulation 3(1)(b) its expenditure which is to be taken into account in pursuance of Regulation 5(2).
(3) The amount by which the block grant payable to each authority for any financial year shall be increased or decreased in pursuance of paragraph 2(2) of Schedule 10 to the Act shall be ascertained by reference to the amount by which the block grant for that year is increased or decreased in accordance with paragraph 1 of that Schedule and shall be that proportion thereof as is mentioned in Regulation 6(1)(a) as it applies in relation to that authority.
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