Schools 'hold back £2bn'

SCHOOLS are hoarding £2billion in taxpayers' money they were given to buy books and hire teachers, ministers warned today.

Heads at more than 8,500 schools in England - including 977 in London - are breaking government rules and holding back more money than they are allowed, Department for Children results for last year showed.

Schools Minister Jim Knight said: "The level of surplus held by some individual schools is too high.

"While it is clearly sound financial management for schools to retain a small surplus from year to year, we expect revenue funding to be used for the salaries of staff at the school and on learning resources to support the education of pupils in school now."

Schools defended their decision to be "cautious" in a recession.