SCHOOLS across Worcestershire will have to pay more than £600,000 in tax this year because of a new ruling over their cash reserves.

As reported in your Worcester News on Tuesday the Government has announced it will impose a penalty on schools carrying cash over from one year to the next.

Under the new policy, schools will have to pay the Government five per cent of the amount being carried forward and it has decided to backdate it to last year.

The tax will be shared out to schools across Worcestershire with a deficit on their budget, but it has been met with anger from several schools and politicians.

Up until this month schools have been allowed to transfer some of their annual budget, usually up to five per cent, to another financial year so that they can save up for major projects, have contingencies for things like staff sickness or use the money between the end of the financial year (end of March) and the end of the academic year (middle of July).

Mike Betteridge, bursar at Bishop Perowne CofE High School, Worcester, said his school faces a £7,500 bill this year.

"We are already pretty lean. We will have to tighten our belts but it is going to be hard. I am not sure which particular area is going to have to give.

"It is an unpleasant situation to be in when we thought we had everything sorted when we submitted our budget to the county council.

"The money is given out to all schools on the same basis and if other schools are in need, the chances are that they have managed their finances very badly. Why should we subsidise badly managed schools?

"Everybody is absolutely infuriated by it because it is so inequable and anything that is retrospective is like moving the goal posts in the middle of the game."

He added the total figure Worcestershire schools would have to pay is equivalent to 21 teaching posts and some schools might have to lose a teacher.

Mid Worcestershire MP Peter Luff said Claines CofE Primary School had saved up £25,000 for computers but will have to pay £2,900 out of this years budget. "They do not have the money," he said.

Evesham parent and schools campaigner Helen Donovan said: "It is absolutely wicked. The funding formula is not fair anyway and we are one of the lowest funded counties in the country. They are taking money off the schools that have saved up and giving it to schools that have not. It is grossly unfair."

Robin Walker, Conservative parliamentary candidate for Worcester, said: "As if Worcestershire didn't have problems enough, being one of the poorest funded counties in England when it comes to education spending, we now have to face a government that seems determined to undermine sound financial planning."