(1) The expenditure referred to in paragraph (2), so far as taken into account in determining the general schools budget of any local education authority for any financial year, is hereby prescribed for the purposes of section 38(4) of the Act (which provides for the Secretary of State to prescribe expenditure which is to be left out of account in determining a local education authority’s aggregated budget for any financial year).
(2) That expenditure is–
(a) expenditure falling to be taken into account in determining central government grants of the following descriptions–
(i) Education Support Grants paid under section 1 of the Education (Grants and Awards) Act 1984 ;
(ii) Local Education Authority Training Grants paid under section 50 of the Education ( No. 2) Act 1986 ;
(iii) Grants paid under section 11 of the Local Government Act 1966 ;
(iv) Grants for the education of travellers and displaced persons paid under section 210 of the Act;
(v) Technical and Vocational Education Initiative grants paid under section 2 of the Employment and Training Act 1973 ;
(vi) Urban Programme Grants paid under section 1 of the Local Government Grants (Social Need) Act 1969 ;
(vii) in the case of local education authorities in Wales, Bilingual Education Grant paid under section 21 of the Education Act 1980 ; and
(b) expenditure falling to be taken into account in determining specific grants from the European Economic Community which support activities in schools.