A headteacher of one of the borough's leading schools has reacted with dismay to news that private consultants KPMG have been paid 27,280 to try to resolve the Government's row with Barnet Council over the borough's education budget.

Lynn Gadd, headteacher of Copthall School in Pursley Road, Mill Hill, said it was outrageous that public money should be spent on the assessment when it could be invested directly in schools.

"Why are they wasting money on investigating a financial crisis that is not of our making, when the money could be used to set against the school deficits?" she asked. "KPMG do not come cheap."

The KPMG review began last week (November 24) after Hendon MP Andrew Dismore put pressure on the Department for Education and Skills (DfES) to settle the argument.

The council claims the Government provision this year has left Barnet schools with a shortfall of 8million. A rise in funding of around four per cent per pupil next year, announced by Education Secretary Charles Clarke in October, is still expected to leave a further shortfall of 4m.

But the Government has in the past disputed whether the council has passed on all the money it has been given.

"The aim is to get to the bottom of the story about what is going on, because the problem has been that the council is saying the Government has not given enough money and the Government is saying that the council isn't properly co-operating," said Mr Dismore.

Tory councillor Lynne Hillan, Barnet's cabinet member for education, said: "I think that a lot of our schools would think 27,000 is a lot of money to spend but I am very happy for them to come and have a look at our finances for education.

"We have got nothing to hide. I am confident of the outcome and am hopeful that it will mean more money for us.

"Barnet has been hit from all sides, so let's see what happens."

KPMG is due to report its findings back to the DfES on Friday (December 5).