A bid for £80m to rebuild schools in Loughborough, Quorn and Barrow-upon-Soar has been rejected.

The announcement that the six English local authorities to receive funding will not include Leicestershire has come as a blow to pupils, parents and teachers.

They hoped it would pay for new buildings, IT equipment and a restructuring of education to save pupils having to change schools at 14.

However, some supporters of Garendon and Limehurst high schools, in Loughborough, which would have closed under the plans, are relieved.

The Government said Leicestershire could re-submit its bid at a later date, but yesterday's decision was seen as critical because uncertainty surrounds the future of the school rebuilding scheme after the General Election.

It now appears the council will try to bring in 11-to-16 schools without Government money to physically change buildings.

Leader of the county council David Parsons said he was "deeply disappointed".

He said: "I will do all I can to ensure the one-through-school model for Loughborough, which many parents have spoken to me about, is delivered.

"However, I'm also aware of the views wishing to retain education provision on the Limehurst site.

"What neither the county council nor the Government can ignore is the big problem of surplus school places in Loughborough – currently 700. It is clear that something has to be done."

Simon Ghent, a parent who has been campaigning for the changes as part of the One Through School group, said he was "absolutely appalled".

He blamed MP Andy Reed and county councillor Jewel Miah who had both said Limehurst should remain open, even though the council said this would be least likely to get funding.

Mr Ghent said: "They spoke in favour of plans they knew their own Government wouldn't accept.

"We're stuffed now. What we are left with is how to implement the one-through-school system with next to no money.

"I'm not only gutted personally but I'm also very annoyed that we've been campaigning hard for three years and now have nothing to give future generations."

As well as naming six councils to receive the funding, schools secretary Ed Balls also spoke of three which came close to being selected out of the 24 that bid. Leicestershire was not one of the three.

Labour county councillor Jewel Miah, who was fighting against the plans to close Limehurst, said: "It's devastating for Leicestershire that the bid has failed but for people campaigning for Limehurst it's good news.

"When you try to steamroll public opinion, this is what happens."

Education bosses wanted a new 11-to-16 or 19 school in place of Limehurst, Garendon and Burleigh, on the Burleigh site.

Under the plans, Woodbrook Vale High, in south Loughborough, and Humphrey Perkins High, in Barrow-upon-Soar, would be extended to take children up to the age of 16, instead of 14.

Rawlins Community College, in Quorn, would have been rebuilt and changed to an 11-to-16 or 19 school.