Any functions of the Secretary of State or a local authority exercisable under Part V of the 1988 Act (grants)24 by or in relation to an abolished authority in respect of a preceding year shall on or after the reorganisation date be exercisable by or in relation to the designated authority.

For the purposes of paragraph (1), anything done by or in relation to an abolished authority in the exercise of any function under Part V of the 1988 Act shall be treated as if it had been done by or in relation to the designated authority.

A new authority shall, from the beginning of the preliminary period, be treated as a receiving authority for the purposes of Part V of the 1988 Act in relation to the initial year.

An abolished authority shall not be treated as a receiving authority for the purposes of Part V of the 1988 Act in relation to the initial year.