DB, I think your post is spot on. I think many schools are very ignorant of many aspects of commissioning services on their own behalf and underestimate the time (cost) of purchasing and monitoring contracts at school level. Not quite the same thing, but a good example nontheless, is running cleaning services at school level rather than buying in an external contractor. The cost p/h of the actual cleaners might be considerably less than the contracted out service. However, the school would need to factor in purchase and depreciation of equipment, training, sickness cover, maternity entitlements, payroll costs, health and safety responsibilities (risk assessments, inspections, COSHH paperwork) and no doubt many more things I haven't even thought of. Put a price on the management time required to provide cleaning inhouse and the overall cost begins to look a lot less attractive than at first glance. This sort of consideration will apply to every individual service that the LA probably provides at present from central funds, as well as those which schools pay for already from delegated funds (but probably are subsidised at present) The amount schools receive as the 'top up' is under review anyway http://www.bbc.co.uk/news/education-13736501