AMBITIOUS £75 million plans to build seven new schools in expanding North Swindon have been jeopardised by the Government.

It has turned down Swindon Borough Council's bid for £28 million of private money to part-finance the scheme, which would see two new secondary schools and five primary schools built in the Abbey Meads area.

The start date of the project originally 2003 is now likely to be pushed back at least a year as the council will have to wait at least another six months to re-apply for the cash under a private finance initiative (PFI).

But Mike Lusty, Swindon's director of education, said today he is still hopeful the council will be successful if it applies again next summer.

With just £45 million in its reserves to spend on major projects, the council does not have enough money to fund the scheme without help from the private sector, but officers will now look at other areas where they can free up cash.

More schooling is desperately needed in the northern sector, where an extra 10,000 houses are planned. As new houses are taken up, schools find they are having to cope with more pupils chasing limited spaces.

By building two new secondary schools, an extra 500 new pupils could be taken into secondary education every year.

Under the plans, one may be created at the existing Hreod Parkway and one on a new education campus in an area of development known as Haydon Sector 3. Brimble Hill and Uplands Special Schools would then be re-located to one of these sites.

A new school could also be built at Rodbourne Cheney and Moredon and new youth centres created in Moredon and Haydon Sector 3.

Swindon Council is hoping that if it is awarded the PFI money next year, the plans will not be thrown radically off course but officers have admitted priorities may have to change.

It is likely that resources would first be concentrated on Hreod Parkway which will be under severe pressure by 2003 rather than building new schools further into the Northern sector.

The council has been told its bid was rejected because other applications were deemed more worthy. It will now meet with officials from the Department of Education and Employment on December 20th to discuss the situation.

Mike Lusty, Director of Education, said: "While this is very disappointing, it is more disappointing because we actually discussed the early stages of the PFI proposal with the DfEE before submitting our expression of interest and they actually seemed positive.

"They have to look at individual schemes and have suggested that they are not able to support Swindon's bid because other proposals more closely fit the criteria for a PFI than ours.

"But we have had some feedback and have been told we stand a good chance when the opportunity comes next summer to bid for a PFI for 2003/2004."

The council's Conservative leader Mike Bawden (Old Town and Lawns) said: "If we don't have the ability to get the PFI off the ground we have got one hell of a problem. There are fundamental facts facing this authority which really worry me. We have got £45 million in the bank and we have to raise the money from somewhere to meet our statutory educational requirements."

North Swindon MP Michael Wills said he was confident the new schools would all be built.

He said: "I am hopeful that Swindon is still going to get these wonderful new facilities and I shall be doing what I can to make sure this happens."