What's the issue then? In a nutshell, the council is spending £8.5 millions to buy a site for a catholic school, to be run by the Diocese of Westminster (with a dotted line to the pope in Rome then). The admission policy means that with 10% of catholics in the borough, over 70% of pupils will be from outside. The council argued that there's no NEED for secondary schools, and that therefore I'd be nice to have a catholic school, as there are primary catholic schools but the secondary ones had long been closed.
Maybe I'm being naive, but I view this as simple supply and demand question. If there were more good grammar schools, surely parents would put their children in state schools instead of going private?