Stanway School's multi-million pound bid to move sites has been dealt a major blow.

The 700-plus pupil secondary school's appeal for financial backing from the Department of Education and Employment has been rejected.

The department has turned down the school's application for a private funding initiative to pay for a move from its current site in Winstree Road to its playing field 400 metres away.

The rest of the cash would come from the sale of the current site for housing.

A new school would then be built on the field at an estimated cost of about £10 million. Colchester councillor Colin Sykes (Lib Dem, Stanway) said he was aware the plans had run into difficulties.

He said the school's playing field was the only bit of green space in that part of Stanway and the plans to build on the site were not supported by residents.

Mr Sykes added: "I have not come across anybody who has said the school ought to move."

Nobody from the school could be reached yesterday.

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