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7.—(1) Subject to paragraph (2), in any case where the school became a grant-maintained school before 1st April in the financial year in question, the funding authority may if they think fit, and after consulting the local education authority and the governing body of the school, instead of determining an amount under regulation 6(3), determine an amount in accordance with paragraph (3).
(2) This regulation shall not apply in the case of a school which is situated in the area of a local education authority which, by or in consequence of a structural or a boundary change (or both such changes) within the meaning of section 14 of the Local Government Act 1992, effected by an order made under section 17 of that Act, is not the local education authority which maintained it in the preceding financial year.
(3) Where the funding authority decide to determine an amount in accordance with this paragraph they shall determine an amount by—
(a)taking the amount which was determined under regulation 6, 7, 12 or 19 of the 1996 Regulations as the amount of maintenance grant, comparable to a maintained school’s budget share, payable in respect of the school for the preceding financial year; and
(b)adjusting that amount by such amount as appears to them to be fair and reasonable having regard, in particular, to—
(i)any increase or decrease in the actual or planned level of spending of the local education authority in respect of the schools maintained by them occurring since that financial year; and
(ii)any significant change in the characteristics of the school occurring as aforesaid or which it appears to them is likely to occur before the end of the financial year in question.
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