I've heard from an employee that this is true of our LA.
This:
"Targets limiting LA spending on out-of-county or residential school placements – These objectives, again, were mostly at individual SEN team staff member level, but were very common."
... also hit home, as our LA no longer hides their intentions in this area, as I have been able to find minutes of meetings and other documents online that not only state they will not place pupils in out of county placements anymore. Those are the same minutes where they admitted they had refused all but one top-up request for SEN budgets at local schools. The way it was written was tantamount to crowing about how clever they were for doing this. 
Getting ds into out of county placement went relatively smoothly, as the standard local provision claimed they couldn't meet need, which left him nowhere to go and his school had always been used to plug that gap. The LA has since allegedly opened it's own provision to fill the gap - only the new provision is nothing like what was needed and full of pupils with different needs that had nowhere to go after the pru was closed due to failing OFSTED. I know of three children coming up through ds1's primary school that would most likely have gone to the out of county placement he's at, but will now be put in the LA's new dumping ground instead.
The LA is aiming for zero out of county placements once current numbers have finished going through their schools - how does that equate to them supposedly considering the right placement for the needs of the child ? Simple answer ... it doesn't. 