Proposed cuts to subsidised transport could force church schools to reduce staff and cut classes.

Brian Sheed, headteacher of Our Lady of Lourdes Roman Catholic Primary School in Rottingdean, said the effect of the plans by cash strapped East Sussex County Council could be "catastrophic" for small schools like his.

He said: "If we lose our transport grant, worth about £6,000 a year, we would probably be looking at a reduction in numbers of about 40 pupils because parents cannot afford to send their children here.

"In a school with only 214 youngsters it's very serious. If there are no school buses the whole school's future would be in doubt.

Mr Sheed fears Brighton and Hove City Council could follow East Sussex council's lead.

He said, "The school roll would probably fall by 20 per cent and we would have to amalgamate classes and lose staff."

The cut in subsidy to Our Lady of Lourdes would affect the bus which brings 60 children from Peacehaven, Saltdean and Telscombe Cliffs to the school each day.

It has been running for the past 15 years and provides supervised transport for four to 11-year-olds to the school gates. Parents and the PTA contribute to the cost of the school buses in addition to the council subsidy and campaigners believe the worst hit would be the poorest families.

Mr Sheed sent a letter to parents before the public consultation period closed last week urging them to contact the council and object to the proposals.

Dee Simson, chairman of the school's PTA and a governor, said: "Parents send their children to Our Lady of Lourdes because they want them to be educated in a school where there is religious worship not offered at non-church schools.

"If this bus service is taken away and parents are no longer able to send their children to the school, the council will have taken away parents' choice of school. Parents are deeply shocked by the proposals."

The council's education, social services and transport budgets are under pressure and recent floods have added to the problems.

A report is being drawn up detailing the views of the public which will be given to county councillors.

A decision on whether to make any changes to the school transport policies is expected at the beginning of April.

Jay Kramer, lead councillor for education at East Sussex County Council, said: "It was not our intention to cause anxiety by carrying out this public consultation, it was to look at the discretionary part of the budget to see if we could make cuts.

"All county councillors, myself included, have received lots of letters on this subject and they have all been submitted and all the issues raised will be taken into account."

An interim report on the public consultation was discussed by the council's learning panel yesterday.

The findings of members will be discussed by Cabinet councillors at a meeting on March 20.