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Schools will not return to council control.
More than 2.5m remain in council control.
Other services have been moved back under council control.
Police also work from council control rooms during peak times.
The chancellor says he wants to remove schools from council control to "drive up standards".
It envisages the removal from council control of failing services and a transfer to children's trusts.
The surest route to tackling underperformance, ministers aver, is to remove the service from council control.
Some schools improve once they are removed from local council control, others get worse.
The Lib Dems held on to council control in Portsmouth, Cheltenham, Eastleigh, Colchester and Watford.
This, he says, will improve transparency "and, in turn, lead to a more consultative and democratic form of council control".
School funding, of course, is already out of council control for academies, and increasingly for non-academies.
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