Thousands of school modernisation projects across England can start 12 months early after £919 million was brought forward to boost the construction industry, Children's Secretary Ed Balls and Schools Minister Jim Knight have announced.

More than 100 local authorities in England will share £499m brought forward from 2010-11 to the coming financial year, after bidding for capital investment made available in last November's Pre-Budget Report.

Mr Balls has also accelerated another £390m of capital funding devolved to direct to every school head in England to invest in smaller projects as they see fit - from building new classrooms or science laboratories to fitting out new gyms or ICT facilities. A further £30m is now available for play areas.

The announcement is a key plank of the Government’s fiscal stimulus package to boost the economy in the current downturn.

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It means that overall schools capital spending in 2009-10 will be will now be £7.943 billion - up from under £700m a year in 1997.

Mr Balls also welcomed new measures to support long-term public capital investment programmes by enabling private finance to keep flowing into the Building Schools for the Future programme (BSF) and other PFI-funded projects, announced by the Chief Secretary to the Treasury.

Mr Balls said: "These measures are a vital boost for our unprecedented school building programme - with an immediate cash boost over the next year to accelerated smaller modernisation projects, alongside further longer-term financial support for BSF.

"The construction industry is one of the keys to a strong economy. We will never forgive ourselves if we turn our back on it during the current tough times and do not sustain it for the future.

"Accelerating £919m by 12 months is going to give immediate support to thousands of small and medium-sized businesses fitting out these new facilities.

"We've transformed the quality of school facilities - with 1100 new or rebuilt schools in the last decade, 27,000 new classrooms and fantastic new facilities springing up across the country. Every school and 116 local authorities can now bring forward planned modernisations and refurbishments instead of waiting for another year - meaning children and teachers can benefit from top quality, new facilities sooner."

(CD/JM)