Millions of pounds promised to schools has gone missing in the system, the Government said today.

Brighton and Hove schools are missing £3.4 million since the money was handed over by the Government.

Education Secretary Charles Clarke shifted the blame for looming staff cuts by revealing how much cash has failed to reach head teachers.

Now Mr Clarke has given Brighton and Hove City Council ten days to explain why the millions earmarked for individual schools has not been allocated.

East Sussex County Council must explain why it is holding back £1.4 million.

Mr Clarke also raised questions over a further £600,000 Brighton and Hove is holding in its contingency fund. East Sussex has £700,000.

The claims followed warnings by teaching unions that ten per cent of schools are facing staff cuts because of budget shortfalls.

The Government fears teachers will be axed prematurely before its extra cash for schools has reached the classroom.

Mr Clarke insisted he was not "naming and shaming" any local education authorities but instead asking all 148 to explain why cash was not reaching schools.

However, the Brighton and Hove and East Sussex cash is part of a total of £590 million missing nationwide that Mr Clarke insisted explained the cash crisis facing schools.

It also emerged Brighton and Hove and East Sussex have retained some of the money intended for schools for central services.

The cash will instead be used to pay for special needs education, teaching pupils who have been excluded or for repairs.

If Brighton and Hove's 6.6 per cent increase had been passed on in full, schools would have had an extra £1.5 million.

If the full amount of East Sussex's 9.8 per cent rise had gone to schools, they would have had an extra £1 million.

Mr Clarke said: "I want every LEA to look closely at their spending plans, and their unallocated budgets in particular, to ensure the maximum possible amount is given to individual schools without delay."