A LOCAL authority has announced it is to spend more than £12m on improving school buildings -- just weeks after being accused of diverting money to build new civic offices.

In a statement ahead of this week's budget meeting, Caerphilly borough council said it will spend £12.5m on modernising run-down classrooms in the financial year of 2005/06.

This decision follows stinging criticism by opposition councilors in recent weeks after plans were revealed to spend £20m on new offices at Tredomen.

The offices would replace the authority's Ystrad Fawr base, which is on the site of Caerphilly Local Health Board's preferred location for a new hospital for the county borough.

Plaid Cymru's Oakdale councillor Allan Pritchard said £8m of that money was earmarked by his party when they were in power to improve crumbling schools in the borough.

Councillor David Hardacre, deputy leader with responsibility for education and leisure, said: "We are going to spend £5.5m on school buildings this year plus £7m from the schools' improvement grant scheme, making a total of £12.5m."

Independent Blackwood councillor Kevin Etheridge said: "I'm pleased to see that the Labour administration has listened to the opinions of Plaid Cymru and Independent councillors and have realised the importance of education, education, education.

" I'm glad they are coming on board after listening to the constructive criticism of experienced opposition councilors."

Independent Cefn Fforest councillor Graham Sim-monds said: "If they are genuinely interested in increasing spending on education, even if it means redirecting money from the capital programme, then I'm pleased. "However, I don't think they can spend more than £12m without taking it from other sources."