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 fixed under paragraph 1 of that Schedule (being the amount by which the Welsh block grant for that year is increased or decreased in accordance with that paragraph) and—
(a)where the Welsh block grant for that year is increased, shall be that proportion of the amount fixed under paragraph 1 of that Schedule as is mentioned in Regulation 6(1)(a) as it applies to that authority;
(b)where the Welsh block grant for that year is decreased, shall be an amount which bears the same proportion to the amount fixed under paragraph 1 of that Schedule as the number (counted in accordance with Regulation 6(3)) of Welsh students in England belonging to the area of that authority bears to the total number (so counted) of Welsh students in England.
(4) In paragraph (3) and subject to the provisions thereof,“Welsh student in England”means a student belonging to the area of an authority attending any course specified in paragraph 1 of the Schedule to these Regulations provided in England at an establishment of further education maintained or assisted by a local education authority in England.