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3. In regulation 2 above “relevant expenditure” means expenditure on or in connection with a capital project where such expenditure arises out of—
(a)a decision by the Funding Agency for Schools or the Secretary of State, notified to the governing body of the relevant school before 1st September 1999, that they or he would be prepared to pay grant either under section 246 of the 1996 Act or paragraph 4 of Schedule 32 to the 1998 Act in respect of the project;
(b)a decision by the Secretary of State notified to the governing body of the relevant school before 1st September 1999, that in his opinion it is appropriate to increase the number of places at the school other than by making a significant enlargement to the premises for which statutory proposals would be required;
(c)approval by the Secretary of State before 1st September 1999 of statutory proposals in respect of the school; or
(d)approval by the Secretary of State before 1st September 1999 to the school becoming a specialist school.
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