Abstract
This paper explores the approaches taken by local education authorities (LEAs) to the funding and organisation of provision for special educational needs (SEN) under local management of schools (LMS). LMS is seen as playing a central role in the new right's attempts to introduce market ‘realities’ into public sector organisations. It is argued that a more market‐oriented discourse, with its concomitant emphasis on individualism, is taking hold in LEAs, and this is illustrated by references to developments in special education in two case study authorities. The two LEAs respond differently to this situation. However, it is concluded that, despite these variations, LEAs are increasingly in a position where they are having to adapt to a more market‐oriented culture. One element of this is that responsibility for pupils with special needs (particularly those without statements) is increasingly becoming that of the school alone. However, arrangements for ensuring and monitoring that provision remain unclear.