Abstract
The 1993 Education Act introduced changes that encouraged the supply‐side of the quasi‐market of schools. As a result of that Act, since April 1994, it has been possible for groups of parents or independent sponsors to apply to the Secretary of State for Education and Employment in England or the Secretary of State for Wales to establish their own grant‐maintained schools. Additionally, existing faith‐based or other private schools are now able to apply to become re‐established as grant‐maintained schools. This article traces the attempts of various existing private schools and potential sponsors to establish new schools within the state system. Very few have so far been successful, and it is argued that the Funding Agency for Schools and the Department for Education and Employment are operating the new scheme in ways similar to those of a commercial franchise.