A school has been ordered to take drastic action to cut its budget deficit before merging.

Bradford Cathedral Community College, which has a chequered history and is in special measures, is likely to merge with high-flying Dixons City Technology College to create a new-style City Academy in 2004.

But BCCC is £200,000 in the red, Bradford Council's executive committee heard yesterday, and if that is still the case in 2004 the bill will be picked up by the authority.

The East Bowling school ran up the deficit after having to draft in extra senior managers following the sudden departure of the previous headteacher.

Members of the executive considered an update on the plans to set up the new Academy.

The meeting was told that on the date of closure, August 2004, any balance in the school's budget would revert to the Council - but it would also have to cover any deficit.

"The most recent projection is that the school will be in deficit," a report to the committee said.

"The school will be required to take appropriate action to eliminate any deficit both in the short term and by the date of closure. Any deficit which remains when the school closes, will fall on the aggregate schools' budget."

Phil Green, director of education, said: "The deficit is currently £200,000 and growing. We require the school to take drastic action to reduce it. Education Bradford is working closely with the school to ensure the deficit is reduced to as close to zero as possible, and preferably to zero."

Councillor Ralph Berry, Labour spokesman on education, said: "The bill will eventually fall to the Council."

Questions were also raised about the jobs implications of merging the schools, and whether there would be any need for redundancies. The meeting was told that all current teachers were guaranteed a job in the new set-up and their terms and conditions would be protected.

After the meeting David Brett, acting head teacher at BCCC, said he was confident the deficit would be reduced by 2004.

"We are in negotiations and discussions about our potential overspend at the moment, but we are not under pressure to take drastic action," he said.

The meeting also voted to proceed to public consultation on the closure of Temple Bank School for blind and partially sighted children. There will be a six week consultation period for parents, staff and governors starting on January 15.

Plans to close down 14 sets of public toilets across the district were confirmed following a "best value" review of facilities. But toilets at Addingham, Penistone Country Park and Thackley Corner were reprieved. In addition the Council will to put into practice a strategy to develop high quality staffed or automated public toilets at "key strategic locations" in the district.