GOVERNMENT funding for a controversial academy has been cut by £11m, casting fresh doubt over its future.

Plans to build a state-of-the art school in Consett worth £32m were approved before the formation of the Coalition Government in May.

But last night it emerged that Durham County Council has only been offered £20.7 by the Department for Education.

A council spokesman said: "This is significantly less than the previously approved figure of just over £32m contained in our Building Schools for the Future Outline Business Case.

"We therefore have to consider all possible options and no further statement will be made until we have had a chance to consult with our partners and speak to Partnership for Schools." "This will not be possible until the New Year."

Earlier this month education secretarey Michael Gove held a secret meeting at Consett Community Sports Complex, which is earmarked for closure, should the academy go ahead, along with Moorside Community Technology College.

A Department for Education spokesman said the allocation should still allow the project to proceed.

He added: "The Government has had to take some tough decisions on all school building projects, including those in academies.

"We will continue to work to ensure the academy is a success."

But the announcement has disappointed Pat Glass, MP for north-west Durham.

She said: "The Coalition Government and the Education Secretary are not being truthful when they claim that there’s no money left: the money is there for a new academy school.

"This decision was not made after careful deliberation of the needs of our children and the value of the project but was an ideological one from a government which prefers to spend money allowing middle-class parents in the South East to open free schools in empty shop buildings and bailing out Irish banks.

"It is shocking that the Education Secretary has dragged making a decision out for so long, forcing parents, pupils and school staff to endure months of anxious uncertainty."

Liberal Democrat Durham County Councillor Owen Temple said the council should publish full details of the funding offer from the Coalition Government.

Council spokesman Jan Hillary, who confirmed the funding offer had come from Minister for Schools Lord Jonathan Hill, said: "We certainly would not publicise it without his permission."