Local Management of Schools (LMS) was introduced in 1990 as a direct result of the 1988 Education Reform Act.
LMS required local education authorities to use a formula to delegate budgets to schools for governors and head teachers to manage. Each LA had an individual formula which had been agreed with the Schools Forum.
The schools and governing bodies were also given wider powers to make local decisions with less reliance on the LA.
The term 'LMS' is no longer in common use with the DfE; however the principles and practices remain, including the Scheme for the Financing of Schools.