A Rowley Regis school has hit back at claims it held back thousand of pounds which could have improved standards of learning.

Brickhouse Primary was among several schools criticised for holding a balance during the last school year which exceeded limits set out by the Department for Education and Skills.

Schools across the borough held total balances of more than £13million, prompting council leader Bill Thomas to describe the situation as "grotesque".

Councillor Thomas said the school's concerned should have spent the money on extra teachers and equipment.

Chair of Governors at Brickhouse Phil Matthews claimed the report was factually inaccurate, and said the school would never keep money away from the pupils.

He said: "Any money we have in our budget is used for the good of the children. Over the last two years, there have been many, many ways in which we have spent our budget to support our children. We are determined to make Brickhouse the best it can possibly be."

According to the report Brickhouse held a balance of more than £62,000 for the 2006-2007 financial year, which worked out at 10.03 per cent of the school's budget.

Government guidelines require Local Education Authorities to monitor primary and special school balances which exceed eight per cent of their total budget.

Councillor Ian Jones, Sandwell Council's cabinet member for children and young people, said the balance included in the report was calculated using the formula used for all schools in the borough.

Cllr Jones said: "This is to ensure consistency in the way we report school balances in the borough."