According to leaked details of the schools white paper, expected to be published next week, all state schools in England will be funded directly from Whitehall as opposed to the current system where funding is managed by local authorities.
The proposals are also reported to give more financial responsibility to head teachers.
But Chris Keates, general secretary of teaching union NASUWT, said: "The government has an irrational contempt for local authorities, which is equalled only by its contempt for public services. "Once the funding link with local authorities is cut, every school will be cast adrift, at the mercy of a government quango.
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