The process of the passage of the Education Reform Bill in Great Britain is likely to be long and controversial. The bill is likely to have a major impact on the funding and administration of higher and further education. It is likely that polytechnics and other major institutions now under the control of local authorities will obtain corporate status and will be able to hold their own property, appoint their own staff, and be directly responsible for their own affairs. About 80 percent of what is now provided in what is called the public sector will pass away from local authorities and only relatively limited and specialist provision will be left in the mixed economy Local Education Authority (LEA) colleges. Existing funding arrangements will be replaced by a system of contracts. The main thrust of the Education Reform Bill in further and higher education and in the schools is to reduce the influence of local LEA members. Accountability will thus likely be left more entirely to the customer or as a matter between contractors. It is, however, very likely that LEA departments will have to act as agents for institutions under contract for a long time to come. The bill will, finally, confirm the local authority provision of further education explicitly. (MN)