COUNCILS left out-of-pocket following the scrapping of the Building Schools for the Future Programme (BSF) could consider legal action to recover their multi-million pound costs.

A total of 79 school re-building projects in the region were scrapped when incoming Education Secretary Michael Gove axed the programme, describing it as being responsible for “massive overspends, tragic delays, botched construction projects and needless bureaucracy”.

The Local Government Association, which represents local councils, said town halls that had embraced BSF should “not be out of pocket and their residents should not end up footing the bill”.

It has been suggested that unless they are compensated, councils and bidding consortia could take legal action to recover sums of money spent on preparing for projects that will not now be completed.

The Northern Echo spoke to six affected councils, which between them spent just under £8m preparing for BSF.

Most said they were considering their position.

Durham County Council said it had incurred £1.5m costs for BSF schemes either stopped or under review.

David Williams, corporate director of children and young people’s services, said: “We are currently assessing the impact of the Government’s announcements over the future of the BSF Programme and the council is considering how best to respond to this and how to achieve its continued aspiration to transform secondary education.”

A Darlington Borough Council spokeswoman said it had spent £200,000 on preparatory work and added: “We would need to balance the legal costs associated with recovering any of that money with the amount we are likely to get back.”

Sunderland City Council said it had spent £476,352 on staffing, design and procurement advice and specialist consultant advice for BSF.

Council leader Paul Watson said: “We would hope that the abortive costs of any project agreed by the Government, would be compensated for by the Government.”

Hartlepool Borough Council said it had spent £3m preparing for BSF projects, but a spokesman said it not yet had the chance to “formally consider a view”.

Both Stockton and Redcar and Cleveland councils said they had not taken a decision over whether to pursue compensation.

Stockton Borough Council spent £2.8m on BSF projects.

Redcar and Cleveland Borough Council said it had not yet calculated its costs.

The Government has announced a review of capital expenditure on schools which is expected to report back later in the year.