They have paid the school a term in advance. It is reasonable that they would want the placement to continue at those funds have been used. However, it is not reasonable to allow a child to fall further behind in a placement simply because the fees have been paid.
That makes it about money and not the child.
It is also common for non-SEN children to move placements in-year after funding has been agreed/allocated. Why should a child, simply due to their SEN, be restricted from doing this? Presumably the LA is at liberty to make funding arrangements/negotiations with the school to deal with these kinds of issues too.
I don't mind them checking with their other maintained special schools tbh. I just thought that given they were unable to meet his needs then and his statement has not changed, based on the paperwork the conclusion will be the same unless they've suddenly improved their provision.
I suppose a probably sensible strategy of the LA would be to reassess!? That's a bit scary but not hugely.