THE Clarendon School in Trowbridge has been operating with a deficit budget for a year and is following a recovery plan to pull itself out of the red.

In March last year the school had a budget deficit of £264,000. The figure now stands at £190,000 and headteacher Colin Kay hopes the current financial problems will not derail its recovery.

He said: "We have made a substantial reduction in the deficit. We are just finishing the first year of a recovery plan and at the moment we are ahead of that plan." The school's problems began with a loan taken out for new computer equipment and got worse through a series of poor financial settlements. A new building the school had to pay to furnish then added to the problem.

As well as extra costs incurred through national insurance and pension contributions Mr Kay said the school's exams admissions costs have doubled over the past three years, now at £80,000 a year.

He could not rule out the possibility of future redundancies.