40pc cuts threat to reviving crumbling schools

Chancellor George Osborne has issued a diktat for Government departments to draw up plans for cutbacks of up to 40 per cent in what is set to be the toughest spending review since the Second World War.

The Yorkshire Post has learned one of the key schemes under threat is the 55bn Building Schools for the Future (BSF) programme, which is overseeing major investment to replace or renovate some of the region's most dilapidated schools.

Concerns are mounting that the private sector will be badly hit if the BSF programme is dramatically scaled back as beleaguered construction firms are desperate to secure contracts.

Kirklees Council leader Mehboob Khan said: "Currently the investment for Kirklees is due to be 450m to 500m which would have funded improvements at nine high schools and built a new sixth form centre.

"Our high schools need significant investment, the buildings are shot to pieces. North Kirklees does not have a sixth form centre and pupils have to travel to Leeds. That is why, if any education budgets are going to be protected, it needs to be a priority.

"Not only that, but if the investment doesn't happen, we would have spent millions in preparation work that will now be completely wasted.

"The education standards for thousands of pupils who desperately need a good start in life would suffer. It would be the biggest let-down of Kirklees by any Government."

The Department for Education confirmed a review of the BSF programme is underway and an announcement is due within the next week. It is understood, however, that up to 700 school building projects are under threat nationally as the Government attempts to save about 1bn-a-year by cutting back the programme. Labour leadership contender and MP for Morley and Outwood Ed Balls said: "It is another short-sighted decision.

"Billions of pounds of contracts to support thousands of jobs and local businesses will now be lost. And many schools and councils have spent a lot of money working up their rebuilding plans only to find the rug pulled from under them."

The Department for Education and Ministry of Defence have been told to draw up plans showing the impact of budget cuts of 10 per cent and 20 per cent. While health and international development have been protected, the rest of Whitehall's departments are preparing plans for cuts of between 25 per cent and 40 pet cent.

Ministers were informed of the details at the Cabinet meeting in Bradford on Tuesday last week.

Instructions were being confirmed in a letter from Treasury Chief Secretary Danny Alexander today. Transport Secretary Philip Hammond acknowledged achieving the cuts would be difficult, but insisted it was necessary.

Treasury officials stressed what was being prepared was "initial planning assumptions" and that the cuts of up to 40 per cent may not actually be enforced in the final settlements in the autumn.

However, the Office for Budget Responsibility forecast that 600,000 public sector jobs will be lost as the Government tackles the deficit.