A BOX school that ran up a huge overdraft has been praised by inspectors for the way it has tackled the cash crisis.

Box Highlands School went £77,000 into the red, more than a quarter of its annual budget of £290,000.

The school's deficit was higher than the maximum allowed by Wiltshire County Council.

The county council stepped in to take charge of the school's finances. Head teacher Mike Plummer and the school's governors had to come up with a recovery plan.

The county council has been monitoring the school's financial situation since October last year.

The inspection by the Ofsted team is the first since the cash crisis. The team praised the school's performance but picked up on the financial problems.

Mr Plummer said: "We've been working with the education authority who've been very supportive and understanding.

"We have a budgeting plan in place and are recovering well."

The cash crisis was blamed on the school having a large number of children from armed forces families on roll.

Mr Plummer said it was extremely difficult to budget because the service children could move without warning when their parents were posted.

The Ofsted team found good quality teaching and behaviour.

The report said: "Pupils enjoy lessons and have positive attitudes towards learning and school.

Mr Plummer said: "The report sets an agenda enabling us to move forward with confidence."