EDUCATION chiefs in York and North and East Yorkshire say the Government's bid to stabilise funding for schools next year does not go far enough.

The Education Secretary, Charles Clarke, has offered an increase in funding of four per cent for most schools.

But the authorities claim it will not help many cash-strapped schools replace lost cash they used to dig themselves out of the red last year.

Schools across York and North and East Yorkshire were plunged into debt last year due to falling pupil numbers and changes in the way the Government provided funding.

Many schools called on their reserves to balance their budgets, and were hoping for extra funding this year to make up the difference.

A spokeswoman for East Riding of Yorkshire Council, one of the worst hit authorities in the country, said it was disappointed by the announcement because it did little to address the serious shortfall experienced by East Riding schools.

She said: "Schools have had to call on £3.2m of reserves this year - reserves which will not be there next year to support schools in balancing their budgets.

"In addition, a number of schools are running with deficit budgets, which can only be a short-term solution.

"Our calculations put the pressures faced by schools next year at around five per cent, so the guarantee of four per cent will not be enough to cover pressures, let alone make any contribution to this year's shortfall.

"However, we will need to look at the details behind the announcement before we can fully assess the impact on schools."

Coun Carol Runciman, the executive member for education at City of York Council, said: "We have not got enough detailed information about the settlement for York. At first glance it looks as if it will give schools a standstill budget.

"We need to point out this does not replace the money schools took from reserves last year. We were hoping there would be some sort of top-up - it does not look as if there is."

George Bateman, the head of finance at North Yorkshire County Council, said: "Schools will welcome the guarantee that funding will increase by four per cent.

"However, its spending power will depend crucially on the extent the schools costs will rise.

"Schools in North Yorkshire currently have a deficit of £9m. It is likely that many school will have to make further savings if they want to balance their books next year."

Updated: 10:52 Friday, October 31, 2003