MALMESBURY School will have to make up to six teachers redundant because of a substantial reduction in this year's budget.

Despite increases in parts of the budget, the school's funding has suffered through lost grants, rising staff costs and reduced sixth form funding.

Headteacher Malcolm Trobe has warned that unless it takes action now, current spending levels could see the school sink further into debt.

Knock-on effects of the redundancies are likely to include an increase in class sizes for some subjects and year groups.

Mr Trobe however, said he was confident the quality of teaching and range of subjects on offer would remain high.

"We have made this decision with great reluctance," he said.

"The school governors have always put the needs of the students first and have been very strong in trying to keep class numbers down.

"Our class sizes are still not going to be vastly different from other schools in the authority.

"We have had a very good Ofsted report recently and we want to improve the standards in the school.

"But the fact is we can't allow the school to sink into a deep deficit that has an impact on future year groups."

The secondary school currently has the equivalent of 69 full-time teaching posts, made up of part-time as well as full-time teachers.

Mr Trobe said staff levels would have to be cut back to the equivalent of around 63 to 64 full-time teaching posts in order to maintain an acceptable deficit of £100,000, which has been set by the school's governors.

This will be achieved by not replacing staff leaving for other posts and by voluntary redundancy.

He said: "It will mean more work for teachers, as they will have bigger class groups and staff are naturally concerned.

"But there is still a commitment among the staff to do the best job we can," said Mr Trobe.

No announcement will be made as to which teachers will be leaving until a couple of weeks before the start of the new term in September.

Chair of the school governors Keith Sharp said: "It is a very difficult decision to make.

"It is a very good school and we know the management team has got a terrific track record.

"But there was very little other option as staff costs are a huge proportion of the school's expenditure."

Mr Trobe said Wiltshire County Council had been very helpful while the budget decisions were being made.

"The local authority has addressed the issues and has been extremely supportive and positive," he said.

"It has made every effort to passport its funding through to the school."

Although there has been an increase in national funding of between three and seven per cent this year, Malmesbury School's budget suffered due to its move to its new site at Corn Gastons at Easter 2002.

Previously the school received money because it occupied two sites in the town.

This move has not been offset by increases in grants in other areas.

Wiltshire County Council's chief education officer Bob Woolfson said: "School budgets in Wiltshire have increased by around 12 per cent this year.

"Malmesbury is a particular case but there are other schools facing reductions in staff because of changes in pupil numbers and long term financial problems that haven't worked out."

The grants lost to the school include a £100,000 split site allowance that covered the additional cost of operating at two sites.

Also lost, was an £80,000 grant to cover general school maintenance costs.

This was no longer applicable because the school had moved to a new site.

Staff costs have also increased with national insurance and pension contributions for teachers rising this year.

Mr Trobe said another factor which had added to the financial problems was a shift in subject choice by the 173 students in sixth form.

This had resulted in a reduction in the grant from the Learning and Skills Council.

Mr Sharp said it was difficult to point the finger of blame but that the Government had not been effective in distributing extra cash to schools.

"I think blame is probably the wrong word," he said.

"The Government has tried to give more money to schools.

"Other areas, particularly London, feel hard done by - and they get 70 per cent more funding than us.

Mr Trobe said he hoped the action taken now would prevent the need for any further redundancies in the future.

Leader of Wiltshire County Council Peter Chalke said: "I don't know the details of the case in Malmesbury but we are obviously concerned when teachers are being made redundant.

"In general there is not a problem in Wiltshire schools. The county council has increased school budgets this year and it is the responsibility of the school to set their spending levels."