Schools in West Sussex are under threat of losing £10 million, a leading councillor has warned.

The fear has been raised by county council Cabinet member Sally Greenwell, who is sending her comments on a new Government White Paper to Education Secretary Estelle Morris.

The Government has said it is planning to review a system known as area cost adjustment, which is the formula used to allocate money to councils like West Sussex, which run education.

Councillor Greenwell said she was worried money could be diverted to other parts of the country at a time when there was clear evidence about the high cost of living in the South-East.

Coun Greenwell, who has responsibility for education and the arts, said the current area cost adjustment system was worth £10 million a year in West Sussex and was particularly needed to recruit and retain teachers.

She told the Education Secretary: "There is widespread concern among teachers, governors and parents across West Sussex that the higher cost of delivering the service in the South-East will not be recognised."

Coun Greenwell welcomed many of the proposals in the White Paper, which will see a major switch of emphasis from primary to secondary-school improvements and increased participation with the private and voluntary sector.

But Coun Greenwell said the White Paper contained "weaknesses" in policies on tackling the problems of helping children with behavioural problems and getting pupils who have been excluded from the school back into the classroom.

She also warned the White Paper could lead to delays and confusion in dealing with failing schools.

She told Estelle Morris: "We are concerned the evident lack of trust in a few local education authorities is leading you to implement policies that will be to the detriment of the education of the children of West Sussex.

"The proposal to require local education authorities to seek alternative proposals for intervention in schools with difficulties, will only serve to delay the implementation of such measures and the evidence clearly points to the need for swift, focused and expert intervention."