Is money spent on free schools at expense of local authority schools good value?

Would a school under local authority governance have got to this level unnoticed?

“A free school in north Devon has been put in special measures after inspectors rated it “inadequate”.

Route 39 Academy at Higher Clovelly received the worst Ofsted rating in all four categories including “quality of teaching” and “pupils’ outcomes”.
The school opened in 2013 and has 131 pupils aged 11 to 18.

Route 39 has complained to Ofsted saying: “We strongly refute the judgement and the manner in which the inspection was handled.”

Ofsted’s report on its June visit said the school had not entered any pupils in Year 11 for exams and was “in breach of statutory requirements and the school’s own funding agreement”.

“Teaching has not prepared pupils in Year 11 well enough for the next stage of their education” and pupils’ progress across Key Stage 3 was “inadequate”, the report said. …”

http://www.bbc.com/news/uk-england-devon-40730622