Coff33, I really hope you manage to sort them out with this. They are seriously cooking the books.
Your LEA sound like they do things the same was as ours and we are expecting the same battle. Our LEA's website actually states that it no longer quantifies hours on statements and we were told the same thing by both our SENCO and our Inclusion Team Leader. The SENCO said that the school is allocated funding and then its between us and them how its is used to support ds. According to her, the LEA don't get involved in whether or not ds needs a 1:1, on the statement they just identify/state his SEN/s based on their assessment, give the school some money to support him in whatever they see necessary and then let them get on with it. 
I didn't get into an argument about it at the time, as I know the school is resistant to giving him 1:1 support (almost definitely based on cost alone), but I will if necessary.
According to the LEA's website:
In April 2006, in response to Government guidance, X Local Authority began the process of delegating funding to schools for children with Statements of Special Educational Needs. Previously a Statement of SEN specified a number of hours that a Learning Support Assistant would be employed to work with the child.
For children attending secondary schools delegated funding is in the form of a 0lump sum' added to the school's budget using a specific funding formula. This delegated funding is to meet the needs of all Statemented pupils currently on roll and there will no longer be any reference to a number of hours that a Learning Support Assistant will be employed to work with your child.
This is what you will now see written into Part 3 of the Statement:
The school will make arrangements through their delegated budget to ensure that appropriate staffing, training and resources are deployed to secure provision as specified in Part 3 of the Statement.
For children attending primary schools, all new Statements will now identify a number of funding units instead of hours. These units will equate to an amount of money that will be given directly to the school and the school must use this money flexibly to meet the needs of the child.
This is what you will now see written into Part 3 of the Statement:
Under X LEA's scheme for the delegation of funding for Statemented pupils, the LA will allocate a sum of money equivalent to (x) units. This is in addition to the resources ordinarily available to the school for children with special educational needs.
The school will make arrangements through their delegated budget to ensure that appropriate staffing, training and resources are deployed to secure provision as specified in Part 3 of the Statement.
If you receive an Amended Statement for your child, you will notice a change in the wording in Part 3 of the Statement. 0Resources' in Part 3 will have been amended to reflect the equivalent amount of funding units instead of hours.
For both primary and secondary aged pupils it is intended that this money may be used for any or all of the purchase of specialist teaching time, purchase of other specialist advice, or employment of teaching or non-teaching staff. It could be used to create additional time for specialist staff in the school, or to buy equipment, for example a tape recorder, photo-copied materials, books, tapes, videos, software - and any purchase consistent with the individual
So from what I take from that is - we (the LEA) will bung a chunk of money to your child's school and they are free to spend it as they wish.
Knowing our Head, he would find a way to spend it that would benefit ds a little and the school a lot! He's very clever at that sort of thing.
Well not on my watch he won't!
This thread has been really useful, as I now have some ammunition.
That said, we have to get the to assess him first - request is going in next week, once we've ironed out the kinks.