NORTH West Hants MP Sir George Young is backing schools in their concerns over the impact the miscalculation of central funding is having on their finances.

The governors and headteacher of Winton School in Andover wrote to education secretary Charles Clarke and now the governors and headteacher of Testbourne Com-munity School in Whitchurch are doing the same.

Winton headteacher Andrew Smith, in his letter in the school's newsletter, said increases in National Insurance contributions, pension costs and pay awards have 'more than wiped out' any increases in income.

"The outcome of all this is the school continues to be in deficit and I cannot reasonably find a way of balancing this year's budget," he said.

"The only way to cut costs significantly is to reduce teaching costs. We already have tutor groups of 28 or 29 pupils and if I cut staff these would rise to 34 or 35. I am not prepared to do this as it is educationally a nonsense."

He added the school has already cut the amount it is spending on books and equipment and cannot cut that any more.

In Testbourne School's newsletter, headteacher Hilary Jackson said: "We are more fortunate than many that we are not faced with having to reduce staffing. We have, however, had to cut spending significantly in a number of areas and put on hold some planned developments, as well as reduce the proportion the school contributes to extras such as individual tuition and pupil transport.

"We are managing this year through very careful housekeeping but would find it very hard to continue to protect provision if funding does not improve next year."

In response to Sir George, education secretary Charles Clarke said the funding of schools is a shared responsibility of central and local government.

"We are well aware of the strength of feeling in Hampshire about the education settlement for 2003-04 and have listened to representations about that," he said. "I am committed to working in partnership with LEA and school representatives to identify changes that need to be made for 2004-05 so that all schools can expect to receive a reasonable per pupil settlement in that year.

"We are keen to learn lessons from this year, so that the problems are not repeated. We will aim to ensure that changes are in place in good time to allow LEAs and schools to plan for 2004-05 and so provide increased predictability and stability in school funding."

Sir George said he is keeping an eye on progress.