Mr Squire has also decided to extend the CFF for secondary schools to a further eight areas bringing the total to 31.
Announcing his decisions, Mr Squire said: 'I am delighted to announce that a CFF for primary schools is to be introduced next year. The CFF is now a well established funding system for over 400 GM secondary schools and it is only logical to extend it to the primary sector.
'In order to develop a CFF appropriate for the needs of the primary sector, we will run a pilot in Essex, Gloucestershire and Hillingdon from next April. I am sure many GM primary schools who would like more independence from LEA spending decisions will welcome this news.
'This expansion demonstrates our continuing commitment to the grant-maintained schools movement. We will also issue shortly a consultation paper seeking views on how specific aspects of the CFF should operate in 1997-98. I hope that grant-maintained schools will take this chance to play an active part in their future funding arrangements.'