5.—(1) For the purposes of this paragraph, the Secretary of State shall determine the percentage which the amount determined in accordance with sub-paragraph (2) below is of the amount determined in accordance with sub-paragraph (4) below.
(2) The Secretary of State shall determine an amount by the application of the following formula—
where
A is the amount of the former maintaining authority’s general schools' budget for the financial year in question which, in the opinion of the Secretary of State, would remain after deducting from it—
(a)their aggregated budget for the year;
(b)subject to paragraph (3) below, the authority’s planned expenditure on those descriptions of expenditure listed in paragraph 2 of Schedule 2;
(c)the authority’s planned expenditure on the provision of school meals; and
(d)any amount appropriated for meeting expenditure in respect of contingencies:
Provided that in determining the amounts under paragraphs (b) to (d) the Secretary of State shall exclude any such expenditure, or, in the case of expenditure in respect of contingencies, any amount appropriated by the authority for meeting such expenditure, falling within their aggregated budget;
B is the number of registered pupils on a date determined by the Secretary of State at all primary schools or all secondary schools maintained or formerly maintained by the former maintaining authority (according as to whether the school is a primary school or a secondary school) which are required to be covered by a statement for the financial year in question under section 42 of the Act; and
C is the number of registered pupils on that date at all such schools whether primary or secondary.
(3) For the purposes of sub-paragraph (2)(b) above, the reference in paragraph 2(d) of Schedule 2 to “the preceding financial year” shall be read as a reference to “the financial year in question”.
(4) The Secretary of State shall determine an amount which appears to him to be equal to the amount of the authority’s aggregated budget which is available for allocation to all primary schools or all secondary schools maintained or formerly maintained by them which are required to be covered by the authority’s scheme for the financial year in question, according as to whether the school is a primary school or a secondary school.