The decision by the government to allow schools to use money set aside for refurbishment and other capital projects for paying staff has been slammed by the British Woodworking Federation.

BWF director Richard Lambert said that education minister Charles Clarke’s announcement today that school heads could dip into a £500m fund allocated for repair and refurbishment work as a “short-term expedient with damaging long-term effects”. Mr Clarke said the money could be used by schools this year to buy books and classroom equipment, as well as to cover salaries.

“Our membership were heartened by the earlier government commitment to dedicate a large amount of money to refurbish schools and hospitals. We anticipated that this would more than carry the construction industry forward when the next down cycle in the private property sector arrives,” said Mr Lambert. “But now it looks as though the government is willing to dip into this specially allocated pot just to cover a revenue issue. It’s very alarming for the long-term management of the public services and infrastructure.”

He added that capital spending on schools now would save tax payers money in the long term.

“We are not talking here about new building, but repairing existing building stock and bringing schools up to an acceptable standard; creating conditions that are conducive for learning,” he said. “We’ve seen in the social housing stock that if repairs are put off, then the condition of the buildings gets worse and you’re left with a much greater bill later on.”

Mr Lambert also believes that the government’s decision to divert the money could make it more difficult for individual schools and local authorities to get the vital repair work done in the future.

“Our members were looking at investing in their production facilities to meet the anticipated growth in workload from school and hospital refurbishment,” he said. “If this is now in doubt, the investment will be delayed or cancelled and, when the government decides the time has come to go ahead with the work, there may not be the capacity to cope.”

Alan Wilén, economics director of the Construction Products Association, also condemned the government move . “It undermines its commitment to bring the nation’s schools up the standard demanded for 21st century learning and tackle the £7bn repair backlog. Of particular concern is the government’s willingness to abandon its long-term investment strategy in favour of the stop-go crisis management of the past that contributed to the current poor condition in school buildings.”