The appropriate person may pay any of the following to a best value authority which, in relation to any of its functions, is subject to the duty in section 3(1) of the Local Government Act 1999 (best value duty) or to a relevant Welsh authority—
a grant towards expenditure incurred by the authority in applying for the award of a designation based on excellence in the provision of services, and
where the authority is awarded such a designation—
a grant as a reward for being awarded such a designation, and
a grant towards expenditure incurred or to be incurred by the authority in disseminating information about best practices.
The amount of a grant under this section and the manner of its payment are to be such as the appropriate person may determine.
A grant under this section may be paid on such conditions as the appropriate person may determine as to the circumstances in which the whole or any part of the grant must be repaid.
In subsection (1) "relevant Welsh authority" means—
a county council or county borough council in Wales;
a National Park authority for a National Park in Wales;
a fire and rescue authority in Wales, constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies.