Imposition of requirement on governing body in receipt of special purpose or capital grant

4.  Section 247 of the 1996 Act shall apply in relation to the payment of special purpose grant and capital grant as if there were inserted the following subsection–

“(8A) The requirements–

(a)which may be specified in or authorised by grant regulations as requirements which may be imposed on governing bodies to whom payments are or have been made in respect of special purpose grant; or

(b)which may be imposed by the Secretary of State on a governing body to whom payments in respect of capital grant are or have been made,

may, in cases where such grant has been paid on the basis of assumptions which have, in the opinion of the Secretary of State, proved to be incorrect, require the repayment to the Secretary of State of all or part of the payments made in respect of that grant.”.