A POOLE head teacher has attacked a government plan to claw back millions of pounds from school budgets.

Ian Carter, head at Poole Grammar School, says the proposals would penalise prudent schools and could usher in an era of poor financial management across the educational sector.

Under the proposals, introduced by South Dorset MP and schools minister Jim Knight, education establishments approaching the end of the financial year with surplus cash reserves would be forced to hand over five per cent of these savings, regardless of any impending capital projects.

Lib Dem Mid Dorset and North Poole MP Annette Brooke has tabled an early day motion in the House of Commons calling for the scheme to be scrapped.

She said: "This is just more central government control freakery.

"Taking money from school budgets in this way is little more than a smash and grab on well-managed schools that have planned for the future."

The consultation process ends today, when ministers will decide how to proceed.

Should they press ahead with the controversial measure, the levy will not be imposed until 2008/09, but it may be backdated to balances as they stood at the end of March 2007.

Currently, Poole Grammar School in Gravel Hill, will be forced to hand back £8,000, which would go into a pot before being redistributed to other local authority schools.

Mr Carter said: "I am disappointed that a very blunt tool is being used in order to tackle a problem that could be done in a lot more focused manner.

"A lot of schools could find themselves penalised for being prudent.

"One of the problems I see is that well-managed schools tend to think in terms of long term, whereas this strategy does not take this into consideration.

"It may actually lead to poor budgeting at schools."

It is feared that schools finding themselves with surpluses as they approach the end of the financial year may plough funds into reckless projects in a bid to avoid losing cash.

Mr Knight said: "It is important to remember that the five per cent redistribution will recycle cash to schools within a local authority area and decisions on how this is spent will be made by local head teachers' forums, which are well placed to focus on local needs and priorities."