A radical solution to the financial problems facing schools has been suggested by the leader of Oxfordshire County Council, Keith Mitchell.

Mr Mitchell wants the Government to introduce education vouchers, a controversial idea first proposed under Mrs Thatcher's government in the 1980s.

He said the time had come to look again at the idea of vouchers, which parents could 'spend' at the school they chose for their children.

He claimed vouchers would end the confusing way money is distributed to schools. The issue has been highlighted in recent weeks, as angry school heads face big shortfalls in budgets and the threat of staff cuts.

The Government has claimed councils were not passing money on to schools.

Rod Walker, the chairman of the Oxfordshire Headteachers' Association's finance committee, said: " I'm surprised that a county council leader has advocated a strategy that would mean funding bypassing county councils, as well as schools, and leaving local education authorities with no role."