A HAMPSHIRE head teacher has warned that his pupils' education will suffer because of massive changes in the way the government funds schools.

Hardley School & Sixth-Form in Long Lane, Holbury, faces debts of £52,000 by the end of the educational year - despite making thousands of pounds of cuts.

And headmaster Robert Underwood fears he will be forced to lose more teachers and staff, cut the budget for children with special educational needs and spend less on books and equipment.

The school has 997 pupils on role aged 11 to 18 and had to spend £35,663 from its reserves to limit its overspend this year.

Over the last three years it has forked out £190,000 to plug shortfalls. Hampshire County Council, the local education authority, handed the school £3.5m for the year 2004-05.

But £3m alone is needed to pay teachers and support staff with heating and lighting, insurance, books and school meals costing £550,000.

According to Mr Underwood the problems began when the current government scrapped "grant-maintained" schools and placed them back under LEA control.

He told the Daily Echo: "We have reached the point where the quality of the pupils' education is at risk.

"Our income has reduced, we have seven classes per year group, fewer teachers working more periods each week, larger classes, fewer resources so textbooks become older and children have to share them instead of having their own to take home, and the building has become less well-maintained."

The headteacher who employs 62 teachers, said losing grant-maintained status meant his school had been "placed on the back-burner".

He said: "The extra money which the government is giving to schools is only given to specialist schools, city schools, failing schools, mismanaged schools or reorganising schools, so we don't get any.

"I am not saying this is socially wrong - it's not - but the price is being paid by the average well-managed, well-maintained comprehensive school."

The issue has now been raised in Parliament by New Forest Tory MP Julian Lewis.