Empty classroom places will cost Shropshire schools more than £3.3 million in lost Government grants over the next two years, Shirehall leaders are being warned.

And the savings, which must be found in order to make up for this gaping black hole in the Dedicated Schools Grant funding, will have to come  from within the existing schools’ budget at the local authority.

Falling pupil numbers will see the council’s grant fall by more than £1.5 million next year and by almost £1.7 million in 2012.

Pupil numbers this year total 38,003 resulting in a grant of £152,500,719.

But next year numbers will have fallen to 37,595 with a projected reduction of £1,637,247 in the grant allocation. And in 2012, with pupils numbers down to 37,173, the grant will be cut by £1,693,427.

It is just part of what the council describes as its “unprecedented” financial challenge as the Government puts a severe squeeze on public spending.

On Wednesday the council cabinet will be asked to consider three reports  on future finances. Two of the reports don’t go into detail, but they outline initial cuts of £10 million which the council must make this year as the result of losing funding and they show a need to make additional savings of at least £47 million in the next three years.

The third report sets out proposed increases in fees and charges for many of the council’s services.

The authority is also having to freeze council tax rises which would have netted £3.2 million next year. A zero increase is also expected in 2012.

Today Alan Mosley, leader of the Labour opposition group at Shirehall, claimed Shropshire people were facing a “disastrous situation”.