The 1993 Education Act introduced changes that encouraged the supply-s
ide of the quasi-market of schools. As a result of that Act, since Apr
il 1994 it has been possible for groups of parents or independent spon
sors to apply to the Secretary of State for Education and Employment i
n England or the Secretary of State for Wales to establish their own g
rant-maintained schools. This article traces the attempts of various p
otential sponsors to establish new schools within the state system. It
is argued that the Funding Agency for Schools and the Department for
Education and Employment have developed the detail of the new scheme i
n such a way as to make it almost impossible for potential sponsors to
meet their requirements. The implications of the policy and its imple
mentation are discussed.