Headteachers in East Sussex are facing shortfalls of up to £300,000 in their school budgets, sparking fears of job cuts.

Lesley Farmer, who chairs the secondary headteachers steering group in East Sussex, said: "Secondary heads are concerned the implications of this financial settlement could be far reaching if the current shortfall is not redressed either now or in the next financial year."

The three education authorities in the county received some of the worst annual Government settlements in the country as money is shifted from the South to poorer regions in the North.

The trend is expected to continue for at least three years.

Ms Farmer, of Hailsham Community College, said secondary heads were satisfied East Sussex County Council had not been holding back money, as suggested by Education Secretary Charles Clarke.

She added his latest advice allowing schools to raid their building and maintenance budgets to plug the shortfall was "impractical and shortsighted".

She said: "It's also quite certain that should the funding issues remain unresolved, schools will be forced to increase class sizes and reduce the numbers of teachers."