SWINDON Council will have a debt of £35million to pay off once seven new schools have been built but it still doesn't know where to find the cash.

The schools will be built in north Swindon under a private finance initiative (PFI) by Equion, a division of John Laing PLC, which won the £97million contract.

The Government will fund £62 million of the Northern Schools Development scheme leaving a budget gap of £35million for the council to fill.

Councillor Gary Perkins, lead member for education, says the council plans to sell off land to pay for the schools.

But some people fear this could mean selling off school playing fields and not having enough assets left over to fund future building work on schools.

Phil Baker, branch secretary of the Swindon Association of Teachers and Lecturers union, said: "It's always a worry when assets are sold off to pay the bills because there's a limit to how many assets we have.

"If there are more PFI schemes in the future, then how would we pay for them?

"Furthermore Swindon is desperately in need of revamping more of its schools in the future. And once you've sold off all the family silver, what do you do?"

Under the scheme Hreod Parkway School, which is currently split between two sites, will be rebuilt on a new site, and Moredon Infants and Junior Schools will be amalgamated and rebuilt north of Akers Way.

In addition, a new primary school would be built at Haydon End Lane, Haydon Wick and four other schools would be built on a 32-acre learning campus on the Priory Vale Development.

Coun Perkins said land would only be sold off if it was no longer needed.

"The contract will cost in excess of £90 million," he said.

"We're getting £60million from the Government but we've got to fund the gap which is about £34milllion.

"If that was repaid on an annual basis that would equate to up to £2.9million a year. What we intend to do is close the £34million by selling assets that the town has."

He said that a budget gap like this was standard in any PFI project and that much of the land that would be sold off would be that on which the schools that are being rebuilt are currently situated, including the Moredon schools.

The contract to build the schools is due to be signed by the end of the year and building work is due to start on the scheme next year.