The only thing the CAA are responsible for is ensuring that the training the school provides meets their requirements
OK, so what about the requirement in Appendix 1a to JAR-FCL 1.055, paragraph 9 that reads "A FTO shall satisfy the Authority that sufficient funding is available to conduct training to the approved standards (see IEM No. 2 to JAR–FCL 1.055)."?
The quoted IEM lays down, in some detail, the procedure that the CAA should go through to ensure the financial viability of the organisations that they approve. Instead, the UK CAA just requires a signature on a scruffy piece of paper, which ensures nothing.
it doesn't mean that this school won't .......... have such old, badly maintained aircraft that they are always going tech
The same Appendix to JAR-FCL 1.055 requires that "An adequate fleet of training aeroplanes appropriate to the courses of training shall be provided" and CAP 682 contains more detail as to what is 'adequate'. Don't fool yourself, if FTOs are using cr@ppy aeroplanes, it's because the CAA allows it - each and every airframe in use at an approved FTO has been inspected and approved for use.
It's about time that the UK CAA started doing its job properly, especially in view of the obscene amount of money it screws out of you and me.