Game over for St Tudy's new school?

I've been trying for some time to get clarification about funding for a new school at St Tudy. The crucial issue was to get central government to extend its March 2011 deadline for a £1.3million contribution. The Department for Education has just sent me this email:

"Since the school is a VA school, capital grants for projects at the school are subject to two rules which are relevant in this case.

· grants can only be paid against receipts on spend rather than as an upfront allocation;

· grants have to be spent in the year for which they are made. 2005 Targeted Capital Fund allocations would have been expected to be spent by 2008 at the latest

in view of the financial situation, HM Treasury is no longer allowing departments flexibility to carry forward unspent funding form the last spending review period into the new one."

I have asked Cornwall Council for a comment and will update this post when I get it.