YORK schools could face further redundancies unless they take immediate action to cut their costs, the city's director of education and leisure has warned.

City of York Council's Patrick Scott last night told the Executive Member for Education and members of an advisory panel (EMAP) that financial help was unlikely to come from central Government, and that local steps would have to be taken to rectify budget problems - and prevent further staff reductions.

Mr Scott said the amount of money the council put into education would also have to be considered if the current crisis was to be resolved.

A survey of city schools has indicated that more than 90 per cent of them are in the red, with 51 calling on reserves to balance their books - slashing the reserves total of more than £5 million to about £2 million.

The cash crisis has been caused by changes to the way the Government provides funding, coupled with falling rolls in schools.

More than 20 teaching staff have been made redundant because of the crisis - four of the redundancies were solely down to a lack of funding.

Mr Scott said he and other members of EMAP had met school standards minister David Milliband to discuss the issue. The minister suggested they reduce their costs because changes to the way funding was provided were unlikely.

Suggestions from Mr Milliband included capping teacher pay rises at inflation level and schools being more rigorous in the use of the upper pay levels for staff.

Mr Scott said: "Whether or not I agree with these two suggestions is, in a way, immaterial. I think that neither of them will bridge the £2 million gap we have identified - because that's a big gap."

He added: "We may have to accept that our future is in our own hands and look at the amount of money being put in the education budget above the DFES.

"Otherwise I feel there will be further cuts in staffing next year."

Mr Scott said there was a possibility of extra funding through the Regeneration Fund and the LEA would continue to press for further funding.

Teacher Noel Hulse, a co-opted member of the panel, said: "What we ought to be most worried about is that we can't even stand still in the level of services provided, with more staffing reductions down to budget pressures than falling rolls.

"Looking ahead a little bit, it looks even more gloomy next year."

Executive member Coun Carol Runciman agreed to note the report.

Updated: 10:26 Wednesday, July 16, 2003