Schools in Dudley may be dealt a technological blow after councils were informed of a change in how IT projects are to be funded, the Halesowen News reports.
The government has informed councils in the area that ICT schemes can no longer receive financial backing from the private sector under the Private Finance Initiative (PFI), potentially jeopardising future programmes.
A frontrunner for the management of the borough's school IT provision, which has been overseeing IT services in Dudley's schools for more than ten years, was agreed in November.
The contract is worth around £30 million over ten years but the removal of PFI funding means that the authority will now need to source £10 million elsewhere in order for the contract to be fulfilled.
Dudley Council's cabinet member for children's services councillor Liz Walker told the Halesowen News: "It is difficult but I am hopeful we will find a way, we have had positive and interesting discussions, this project will continue."