THE proposed abolition of Hertfordshire's area cost adjustment by Secretary of State for Education David Blunkett has led Harpenden MP Peter Lilley to urge that ministers think again.

Mr Lilley was highly critical of a government consultation paper which stated 'evidence points to London as the only high cost area', claiming this was wildly inaccurate.

He said property prices and living costs in Hertfordshire closely correlate to those in the capital but it is wages that fall far short.

Mr Lilley believes removing the area cost adjustment from Hertfordshire's standard spending assessment would have a devastating effect on the local economy, resulting in £4 million being lost - equivalent to ten per cent of total funding.

He said: 'Such a significant funding reduction would clearly have a very negative impact on education and training opportunities for young people in Harpenden and Hertfordshire as a whole.'

Mr Lilley has urged Mr Blunkett to retain the present area cost adjustment, arguing that if this precedent were established, extra money for other services would be threatened, leaving the county council, district councils and police authority to foot a bill of more than £92 million per year.

Chairman of the education committee, Keith Emsall backed Mr Lilley. He said: 'It's a continual struggle to retain staff in Hertfordshire.

'Our proximity to London means costs are just as high and it is tempting for people to move somewhere else that is cheaper. But this applies to everything, not just education.'

Although attacking Labour's plans, Mr Lilley was less critical when commenting on proposals launched by the Conservative leader William Hague last week.

In a separate statement he gave his full backing to the Common Sense on Schools Policy, which he said reinforced his party's commitment to freedom, standards and discipline.

Mr Lilley supported plans announced by Mr Hague which would see schools receive an average £540 more funding for each pupil.

He said: 'Under Free Schools, Conservatives will set teachers free from many of the burdens of bureaucracy and government diktats.

'Instead the money will go direct to the schools, to enable them to set their own discipline policies and drive up standards in education for all children.'

Mr Lilley praised the idea, saying it would ensure every pound spent on schools by central government would actually go to schools instead of being swallowed up by bureaucracy.

He said: 'Hertfordshire County Council will have a drastically simplified role - it will still be responsible for certain areas of education - which we expect will include educational welfare, special needs statementing, and ensuring every child in Hertfordshire gets an education.'

But he claimed that ultimately the proposals would shift power from the education authority to the parents.

He said: 'Parents will have far greater choice to apply to whichever school can best bring out the potential of their child.

'Taxpayers' money will then follow the pupil, putting financial power behind parental choice.'