(1) The expenditure referred to in paragraph (2) below, so far as taken into account in determining the general schools budget of any local education authority in England for any financial year, is prescribed for the purposes of section 38(4)(c) and (d) of the Act (expenditure 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) grants for education support and training under section 1 of the Education (Grants and Awards) Act 1984 ;
(ii) grants under section 11 of the Local Government Act 1966 (grants for certain expenditure due to ethnic minority population);
(iii) grants under section 210 of the Act (grants for the education of travellers and displaced persons);
(iv) grants under section 2 of the Employment and Training Act 1973 (grants to assist persons to select, train for, obtain and retain employment etc. );
(v) grants under section 1 of the Local Government Grants (Social Need) Act 1969 (grants relating to special social need in urban areas);
(vi) grants under section 27 of the Housing and Planning Act 1986 (grants for regeneration of urban areas);
(b) expenditure falling to be taken into account in determining specific grants from any of the European Communities which support activities in schools;
(c) expenditure of the kind referred to in section 11 of the Local Government Act 1966 in respect of posts approved by the Secretary of State for the purpose of making grants in respect of such expenditure, being expenditure not falling to be taken into account in determining central government grants;
(d) expenditure in respect of the costs of compensation, redundancy and other payments for staff who are dismissed or who retire prematurely, or for the purpose of securing the resignation of members of staff;
(e) expenditure on services provided by education welfare officers and education social workers and on associated administrative expenses;
(f) expenditure on services provided by educational psychologists in observing, working with and assessing pupils with special educational needs, in advising such pupils, their parents and their teachers, and in providing training to teachers and on associated administrative expenses; and
(g) expenditure, not falling within sub-paragraph (e) or (f) above, in connection with a local education authority’s duties to make assessments of, and to make, maintain and review statements for, children with special educational needs, under sections 5, 7 and 8 of, and Schedule 1 to, the Education Act 1981 (as they continue to have effect by virtue of Schedule 4 (transitional provisions) to the Education Act 1993 (Commencement No. 5 and Transitional Provisions) Order 1994) or sections 167 to 170 and 172 to 174 of the Education Act 1993, including associated administrative expenses.
