12.—(1) On the application of a local authority, its schools forum may authorise—
(a)the criteria for determining expenditure referred to in paragraphs 4 to 6 of Schedule 2, under regulation 8(5);
(b)the reduction during the funding period of any amount of expenditure deducted in accordance with regulation 8(5);
(c)the making of deductions from the authority’s schools budget of expenditure under regulation 8(6);
(d)the redetermination of schools’ budget shares by removal of any of the expenditure referred to in Part 6 (items that may be removed from maintained schools’ budget shares – primary and secondary schools) of Schedule 2 from schools’ budget shares where it is instead to be treated by the authority as if it were part of central expenditure, under regulation 11(5); and
(e)the redetermination of schools’ budget shares by removal of any of the expenditure referred to in Part 7 (items that may be removed from maintained schools’ budget shares - primary, secondary, and special schools, and pupil referral units) of Schedule 2 from schools’ budget shares where it is instead to be treated by the authority as if it were part of central expenditure, under regulation 11(6).
(2) Where—
(a)a schools forum does not authorise any of the matters referred to in paragraph (1); or
(b)a local authority is not required to establish a schools forum for its area,
the authority may apply to the Secretary of State for such authorisation.
(3) On the application of a local authority under paragraph (2), the Secretary of State may authorise the matters referred to in paragraph (1).