A GOVERNMENT review of education funding could leave Worcestershire's schools in an even worse financial position, a shock report has revealed.

Campaigners had pinned their hopes on a new funding formula giving a "fairer" deal to the county's youngsters.

But only one of the four options being considered by the Office of the Deputy Prime Minister would lead to Worcestershire County Council being handed extra cash.

One of the proposals, which were published last night and take into account factors such as deprivation, would have cut last year's £368.7m budget by £4.1m or 1.1 per cent.

A second option would have slashed the education budget by £1.7m, or 0.5 per cent, while a third would have kept it at the same level.

City MP Mike Foster said parents, teachers and politicians must now unite behind the one proposal which would give the count a desperately needed cash boost.

This would have seen last year's budget jump by £3.m, or 1.1 per cent.

But Mid Worcestershire Tory MP Peter Luff said the news would be greeted with dismay by campaigners who have spent years battling for a better deal.

"We are already one of the worst funded education authorities in the country. The idea of making things worse is clearly madness," he added.

The Government has spent almost five years working on proposals to replace the existing Standard Spending Assessment formula.

But, instead of publishing a single set of proposals to take its place, Local Government Minister Nick Raynsford has outlined a series of different options for making the grant system "fairer and simpler".

He will not decide which of the options to introduce until after a 12-week consultation exercise ending on September 30.

Mr Raynsford admitted that whichever formula he opts for will redirect cash from some of the country's wealthier areas - such as the shire counties - to poorer ones.

"This is a difficult and important issue," he said.

"We will consider all views and weigh them up carefully before decisions are taken."