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(1) These Regulations may be cited as the Education (Financial Delegation to Schools) (Mandatory Exceptions) Regulations 1994 and shall come into force on 7th March 1994.
(2) These Regulations apply for the purpose of determining the aggregated budget of a local education authority for a financial year beginning on or after 1st April 1994.
(3) In these Regulations—“the Act” means the Education Reform Act 1988;
 “aggregated budget” has the meaning assigned to it by section 33(4)(b) of the Act;
 “general schools budget” has the meaning assigned to it by section 33(4)(a) of the Act; and
 “the 1989 Regulations” means the Education (Financial Delegation to Schools) (Mandatory Exceptions) Regulations 1989.
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(1) The 1989 Regulations are revoked.
(2) Notwithstanding paragraph (1) above, the 1989 Regulations shall continue to apply for the purpose of determining (or redetermining) the aggregated budget of a local education authority for a financial year beginning on or before 1st April 1993.
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(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 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);
(vii) in the case of local education authorities in Wales, grants under section 21 of the Education Act 1980 (grants for education in Welsh);
(b) expenditure falling to be taken into account in determining specific grants from any of the European Communities which support activities in schools; and
(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. 
John Patten
Secretary of State for Education
3rd February 1994John Redwood
Secretary of State for Wales
8th February 1994