grumpy - sorry your LA are being tossers.
we had our final statement beofre Christmas.
Our LA sent dd1's papers out ot schools we didn't want them to send out to, although they did at least include her current school in the line up too.
sadly, the answer is yes, the LA CAn name any old school on a statement. It isn't a parent's choice. Parents can express a preference, and all other things being equal that preference should hold out.
But of course LA will claim nil costings for state provisions, etc etc, and so things never really are equal.
In our case, the LA sent papers to 5 schools (one of which is where dd1 currently attends, and where we want her to stay - ABA school)
when push came to shove, however, they actually named a 6th provision on her statement (leading to many WTF?! exclamations at this end). the provision they named is the same one we wthdrew dd1 from as it was so thoroughly unsuitable.
to compound the WTF feelings, it is also a private provision...
so they are refusing our private provision choice, whilst naming another private provision (and one that is actually completely unsuitbale for dd1, not least becasue it is a pre-school and dd1 is (or should be) in Yr1)
To be frank, LA's are a law unto themselves.
I don't know how the funding issue would work for you. I assume our LA are not paying for the place they have named on dd1's statement (they were funding her there full time before we withdrew her), so we have the reverse of your problem there.
the fact is, the tribunal timings work in their favour. I think they can pull funding (they have made their decision based on statutory assessment, and their decision is X), and you would have to fight to get it back.
Once at tribunal, your arguments would eb strong (why were they funding it in the first place if it was so unsuitable?) but by that point potentially your ds is no longer there.
is keeping him there totally out of the question? (ie funded by you?)