A councillor has resigned from the Conservative Party over "foolish" remarks made about children from ethnic minorities.

Stedham councillor John Cherry, from Chichester District Council, was quoted in a national newspaper making disparaging remarks about Asian and black children in response to proposals by the Durand Academy in London to open an Eton-style boarding school in the Sussex village.

He is quoted as warning Pakistani children will fail to “rise to the top”, and that some nationalities are “uncertain” what hard work is about.

His party condemned his comments and described them as “totally unacceptable."

A Tory source confirmed yesterday proceedings to suspend him had started, but today he announced he had quit his post.

Announcing his resignation, 73-year-old Mr Cherry said: "My remarks were plainly wrong. They were thoughtless and extremely foolish. I unreservedly apologise and withdraw them. I very much regret the distress this must have caused."

Stephen Twigg, Labour’s shadow education secretary, said: “When a Tory councillor makes openly racist comments like these, it’s no surprise people still think of the Conservatives as the nasty party.

“David Cameron must condemn his councillor’s words and take immediate action against Councillor Cherry to show that he will not accept racism in his party.”

The plans of Durand Academy, which is based in Stockwell, south London, have sparked some opposition from people living near the proposed boarding school site.

The proposal is to use St Cuthman’s School, a disused boarding school in Stedham, near Chichester.

Cherry, who represented the village, was quoted as saying: “Ninety-seven per cent of pupils will be black or Asian.

"It depends what type of Asian. If they’re Chinese they’ll rise to the top. If they’re Indian they’ll rise to the top. If they’re Pakistani they won’t.

“There are certain nationalities where hard work is highly valued. There are certain nationalities where they are uncertain what this hard work is all about.

“If the children are not allowed out of the site then it will make them want to escape into the forest – it will be a sexual volcano.

“Has anyone asked whether these children want to be plucked from their natural surroundings?

"They have never done boarding before, so they won’t know how it works.

“The trauma of taking the children out of their natural surroundings is going to be considerable.”