COUNTY school chiefs have hit back at Government claims they are withholding £3.7m from cash-strapped county schools.

Today marked the deadline - of a 10-day ultimatum - for the council to explain why Government funding has not reached the schools.

A five-page letter from the education authority has been sent to Education Secretary Charles Clarke claiming the money has been allocated to next year's budget, and will all be distributed by the start of the next academic year in September.

"We have gone through point-by-point and explained where the money will go," said Adrian Hardman, cabinet member for resources.

The allocation of the £3.7m was due to be announced later today.