Heads and governors could be put in charge of sharing education cash out to schools, writes Karen Thornton.
The move would result in more than 90 per cent of education money being handed over to schools - about 5 per cent more than at present.
Councils would retain little say over school funds, and dramatically reduce their power base - education makes up the lio's share of their budgets.
Department for Education and Employment civil servants are proposing a clear division of spending between schools and LEAs. Controversially, new "schools forums" of elected headteachers and governors would be involved in decisions about funding where responsibility was shared with LEAs - for example, for special educational needs.