A schools’ review could see a major redistribution of funding in Oxfordshire from well-off schools to poorer ones in deprived areas of the county.

Oxfordshire County Council has become increasingly worried about the number of schools that are sitting on millions of pounds, which it says could be used to improve education standards.

And with the council warning parents and schools to brace themselves for likely cuts in schools funding from the government, County Hall says it is anxious to see money more fairly distributed.

Last year the council estimated that the county’s schools held £14m in bank accounts, with balances exceeding government guidelines.

A review was agreed by the county council cabinet on Tuesday.

A report to councillors said it would seek to find a new funding formula “to reflect the additional cost of serving the most deprived communities.”

The report by director for children Janet Tomlinson warned: “A disproportionate number of schools serving disadvantaged communities are judged as failing and have deficit budgets, causing significant financial costs to the council.

“Any formula should address the council priorities of raising achievement and narrowing the gap in performance.”

Andrew Hamilton, headteacher of Bartholomew School, Eynsham, said it was essential that schools were not penalised for long term planning.