The leader of Hampshire County Council has slated a government increase in funding of £1.60 per pupil as "far too little, far too late".

Councillor Ken Thornber spoke out after a Whitehall announcement that the local education authority's schools budget is to get an extra £278,000 as part of a £27m national top-up grant. Hampshire was one of 34 authorities which lost out because of a shake-up in the way Whitehall distributes cash.

Mr Thornber and other council chiefs lobbied Downing Street against the new funding formula aimed at giving more money to the north. They accused ministers of saddling homeowners in the south-east with high council tax rises. In a statement from the Department of Education and Skills, it was said the government had "listened to these representations" and the extra cash would bring all authorities upto a minimum increase in funding of 3.2% per pupil over two years.

Mr Thornber said: "I am pleased to see that the Government has realised its mistake with Hampshire's settlement and sent additional funding, but the paltry amount does nothing to bridging the gap in Hampshire's funding shortfall and is a severe case of far too little far too late.

He added: "While an increase in the education budget is welcomed, it is makes no difference to the £48m the county lost through the Government's unfair settlement, which resulted in a reluctant rise in council tax of 15%.

"This was needed to bridge the gap and ensure that we continue to offer excellent services and enable us to provide first class education across the county."

How to spend the money will be discussed at the next meeting of the county council's schools forum. Meanwhile the county council has also received a £41.5m government grant for the building and modernisation of school buildings in 2004/06.