At an emergency meeting, the National Governors Council asked that the funding of its adminstrative costs be protected. But the Department for Education and Skills is sticking to plans to award any future grants on the basis of bids for specific projects. The DFES has spent pound;900,000 on the council since 1994.
Its decision triggered disputes about the way forward at the council, leading to the resignations of three executive members. A review by consultants PricewaterhouseCoopers had recommended increasing membership and raising subscriptions.
NGC chairwoman Chris Gale said members felt the Government was undervaluing governors.
A DFES spokeswoman said: "The best way forward for NGC is ... to be more outward looking to its local associations and bodies."