This view was supported by Education Secretary Gillian Shephard who in a House of Commons debate admitted that this year’s spending settlement was tough but added: “Local education authorities can cut their costs. They still spend millions on running their central bureaucracies and on maintaining surplus places in schools.

“The number of teachers actually employed depends not just on the pay settlement and what LEAs decide, but also on how school governors deploy the budgets delegated to them.” She said that her department’s latest estimate is that schools held about Pounds 700 million in balances at the end of 1993-94.

But she was told by David Blunkett, Labour’s education spokes-man, referring to a letter leaked to The TES last month, that in her own words this year’s financial settlement will cause class sizes to shoot up and lead to the loss of thousands of teaching posts.

He said the cuts councils faced will damage the education prospects, the standards of achievement and the opportunity of children in every part of the country. He told MPs that the battle was no longer simply between the LEAS and the Government: it was now also a battle between parents and governors and the Government.

“We are talking about a challenge to Mrs Shephard in matching the increase in pupil numbers, in matching the need for improved investment in books and equipment,” he said. Later he added: “How can a nation face the economic and social challenge of the 21st century with a penny-pinching, underfunding, sanctimonious bunch of ne’er-do-wells running the country?” The Government’s plans for council spending also came under attack from MPs of all parties last week. In a Commons debate, the settlement for the next financial year was variously described as “deplorable” (Don Foster, Lib Dem, Bath), “a strangulation” (Tony Banks, Lab, Newham NW) and “not good enough” (Michael Carttiss, Con, Great Yarmouth).

But a threatened rebellion by Tory back-benchers did not materialise. While some criticised the way the amount councils should spend was calculated, and Mr Carttiss voted against the Government for its treatment of Norfolk, many said the settlement was manageable and poured scorn on councils that were predicting doom and job losses.

Anthony Steen (Con, South Hams) expressed his “disgust and fury” at the “antics” of Liberal-controlled Devon, which was spreading the fear of sacking among 300 teaching staff when it had more staff than the entire European government bureaucracy of Brussels.

And Eric Pickles, (Con, Brentwood and Ongar), mocked “the usual parade of amputated stumps” and declared: “cuts in teacher numbers will not be made”.