Councillors and unions have reacted angrily to proposals to turn a secondary school into a £27 million city academy.

Brighton and Hove City Council announced last week it was looking at converting Falmer High School in Lewes Road, Brighton, into the county's first city academy after securing the £2 million private investment needed for the bid.

The school, which would be state-funded but run outside local authority control by a sponsor would not have to follow the national curriculum.

Councillors at a children, families and schools meeting on Monday agreed to begin preliminary consultation on the proposal but not all were in favour of the scheme.

Green education spokesman Richard Mallender worried that Sussex investment banker Jon Aisbett - who has stumped up the £2 million and is featured in The Sunday Times Rich List 2004 - would seek influence over the type of education on offer.

He said: "People tend not to pay out £2 million for nothing, possibly it's for a little bit of control."

Director of children, families and schools David Hawker said: "Mr Aisbett has no ideology or religion and he has told me he would not want to control the educational detail of the school."

He assured councillors the school would remain at the heart of its Moulsecoomb community and admissions criteria could be written into the funding agreement as a type of charter.

The proposed Falmer Academy would focus on business and enterprise skills and incorporate a sixth form. It could open by September 2008.