A £1.35 million grant given last year to shore up education funding in Worcestershire is not being renewed.

Worcestershire County Council says the decision has serious implications for its finances.

The Government has told the council that the grant was a 'one-off', given to meet complaints about unfair funding.

Worcestershire has long complained of being one of the worst funded education authorities in the country under the Government's Standard Spending Assessment (SSA) formula.

In February, county MPs, including West Worcestershire's Sir Michael Spicer, attacked the position in a special debate in the House of Commons. Malvern headteachers and governors have also travelled to London to lobby the Government directly.

In response, the Government has promised to reform the SSA arrangements. But the county's education spokesman, Coun Adrian Hardman, said this was not expected until at least next year and, meanwhile, the grant had gone.

He said the money had been used to fund teachers' pay awards and the council was left with the option of either trying to cut funds for education or raise taxes, with the latter being the favourite.

"I'm afraid the poor old council taxpayer will have to foot the bill," he said.

Sir Michael said pressure in Parliament would continue and attacked the Government's decision.

"I think it's quite wrong of the Government to have taken this decision," he said.

"They have acknowledged publicly there is a problem with the formula for getting money out to education and said they will change it.

"Having acknowledged that, the logical thing is to go on filling the gap in Worcestershire in the meantime."

Next year's finances, and the implications for council tax, will be clearer at the end of the month when the Government announces draft SSA figures, the basis on which the council will set its budget.