18.—(1) In relation to the financial year beginning on 1st April 1999, a local education authority in England shall determine the budget share of a school which had received maintenance grant in the preceding financial year calculated in accordance with the 1998 Regulations, so as to include an amount for transitional funding.
(2) The amount referred to in paragraph (1) is the amount if any by which the school’s protected level of funding in respect of the financial year beginning on 1st April 1998, determined by the Secretary of State in accordance with Schedule 4 and notified in writing to the authority, is greater than the school’s adjusted budget share for the financial year beginning on 1st April 1999.
(3) For the purposes of this regulation a school’s adjusted budget share is its budget share determined in accordance with this Part but not taking into account the effect of this regulation and regulation 16(4) (budget share adjustments) or regulation 21 (additional provisions for determinations and redeterminations).
(4) A local education authority shall include factors or criteria in their formula which satisfy the requirements of this regulation.