2. Section 50 (effect of financial delegation) is modified as follows—
(a)in subsection (1), for “maintained school“ substitute “federated school”;
(b)after subsection (1), insert—
“(1A) Where a federation has a delegated budget in respect of the whole or part of a funding period, the local authority shall secure that in respect of that period there is available to be spent by the governing body—
(a)where the federation has a delegated budget in respect of the whole of that period, a sum equal to the federation’s budget share for the period, or
(b)where the federation has a delegated budget in respect of only part of that period, a sum equal to that portion of the federation’s budget share for the period which has not been spent.”;
(c)in subsection (2), after “made available” insert “under subsection (1) or (1A)” and for “any such sum” substitute “any sum mentioned in either of those subsections”;
(d)in subsection (3), for “the governing body may spend any such amounts” substitute “the governing body of a federation may spend any amounts made available under subsection (1) or (1A), and any amounts previously made available to the governing bodies of the federated schools before federation,”;
(e)in subsection (3), for paragraph (a) substitute—
“(a)for any purposes of any of the federated schools;
(aa)for any purposes of the federation; or”;
(f)in subsection (6), after “governing body” insert “of a federation” and after “head teacher” insert “of the federation or to the head teacher of each school within the federation”; and
(g)in subsection (7), for “school” substitute “federation”.