Cash deal is hurting kids, say teachers.

TEACHERS' leaders yesterday accused Holyrood and councils of forcing schools to slash budgets and hire fewer staff.

And they claimed that even deeper cuts were on the cards for 2009.

Ronnie Smith, head of teachers' union the Educational Institute of Scotland, hit out angrily at the funding deal agreed last year by councils and the SNP government.

He said: "Simply stated, it just isn't working.

"Teachers are being forced to work in extremely difficult circumstances, with budgets pared to the bone and a growing scarcity of resources. Cutbacks are happening in many areas."

Under the "concordat" deal with Holyrood, councils agreed to freeze council tax and co-operate with other SNP policies in return for more cash from government and an end to the ring-fencing of funds.

The Convention of Scottish Local Authorities rejected Smith's criticisms and accused him of living in the past.

COSLA's education spokeswoman Isabel Hutton said: "The EIS have never been fans of the concordat because its focus is on giving councils the freedom to improve education, rather than just measuring numbers of teachers.

"Their speculation about next year's budget is just that - speculation. Budgets have not been set yet."

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ANGER: Smith