It is claimed the £100,000 a year could have been used to recruit three new teachers or eight auxiliaries to work with special needs children. Class sizes across the district's schools could also have been cut.

A senior education official warned the "political decision" will have huge implications for small rural local authorities.

"The Moray average (per pupil) is approximately £2,800, and the Scottish average is approximately £3,300, so it is questionable whether this can be seen as fair and equitable to the other schools and children in Moray," said Alistair Farquhar, head of education resource services.

However, the parent of the remaining two pupils at Cabrach Primary welcomed the move as a boost to the local community in its ongoing efforts to regenerate the area.

Helena Sierakowska, whose son Aaron (7) and daughter Lily (5) attend the school, said: "I was a bit shocked at first, but this is great news.

"The Cabrach Community Association is working towards getting more young families to come to the area. The attraction to them is the school, and to close it would pull the rug from under our feet."

Moray's MSP and Government Cabinet Secretary, Richard Lochhead, also supported the decision, and questioned the "competence" of Moray Council and its officials.

However, Moray Council insists that closing the school and moving the two children six miles to the 153-pupil Mortlach Primary in Dufftown would have been in their best educational and social interests.

"This has significant implications for the remainder of the school estate in Moray and other small rural authorities," said Mr Farquhar.

Because the pupils at Cabrach live more than five miles away from an alternative school, the recommendation by Moray councillors last July to close it had to be referred to the Scottish Government. After seven months of deliberation, the Government has ruled that there would be no educational benefit in closing Cabrach Primary, and has instructed the council to keep it open.

That has sparked a furious war of words between Mr Lochhead and senior figures at the council.

"This is great news for the people of Cabrach who have campaigned to save their local school and the hub of their local community," said Mr Lochhead.

"The key now is to concentrate on a rural development plan for the Cabrach to attract more young families to the area and children to the school to boost numbers."

He accused present and past administrations of presiding over botched proposals with regard to the future of primary schools. He claimed that its original proposals to close or merge up to 21 schools fell apart under close scrutiny.

"Are they searching their conscience, and are they holding their advisers to account when the education of children in Moray is at stake?

"Every parent in Moray must be wondering what is going on when national education authorities are joining our local communities in calling into question the decisions of the local education department."

Mr Lochhead said cost appeared to be the only factor in the council's decision. He said there was no educational benefit to closing the school, a view supported by the independent Her Majesty's Inspectorate of Education (HMIE).

However, Mr Farquhar hit back: "We are disappointed with the tone and language used by Richard Lochhead in his comments about the proposals.

"The language used is not befitting of a Cabinet Secretary, particularly in this new age of closer working partnerships between local and national government. Clearly the council does not share his view, which cannot be supported by any evidence."

And Councillor Jeff Hamilton, chair of the educational services committee, said: "I find this disappointing diatribe bizarre in the extreme, and politicking at its worst.

"As a result of the Scottish Government decision, we now have to keep the school open for two children, when inspectors from HMIE say there is a very good school just six miles up the road.

"And curiously, the Minister has not made any reference to the negative social implications for the two young children taught in such an isolating environment."

Councillor Hamilton said he was disappointed "but not entirely surprised" by what he claimed was a political decision.

Mr Farquhar admitted that the council was bemused at the Government view that keeping the school open was in the best interests of the pupils, particularly in light of a submission from HMIe which highlighted:

• Indoor PE conducted in the classroom.
• Lack of input by visiting specialist teachers a disadvantage.
• The curriculum taught on an individual basis due to the range in pupils' ages.
• Few opportunities for pupils to meet pupils from other schools.
• Staff working hard to promote personal and social development of pupils as best they can.
• Some social advantages for Cabrach pupils transferring to Mortlach School.
• Mortlach and Cabrach Primary Schools providing broadly comparable educational experiences.

"A very comprehensive and thorough consultation was undertaken over a significant period of time, and the officers of educational services were commended by many representatives of the Moray Rural Schools Network for the open, honest and constructive manner in which they carried out this difficult exercise," said Mr Farquhar.

He claimed that this decision and forthcoming legislation in favour of a presumption against closure of rural schools would mean rural authorities such as Moray facing "significant additional financial pressures" in the future.

"Clearly this is a matter which will require to be given serious consideration by this council, as the implication of this decision by Scottish Ministers is that rural authorities, unlike urban authorities, will be prevented by Ministers from managing their school estate in the most efficient, effective and beneficial manner for all concerned."

He said HMIe will also need to consider seriously its position when evaluating local authority educational services. In the past it has been critical of Moray's failure to address over-capacity in its schools.

Those criticisms in part prompted a 60% occupancy trigger which the council used to initiate investigations about the future of a number of schools, all of which were given a reprieve by councillors with the exception of Cabrach.

The council said that Cabrach was operating at just 16% of its 25-pupil capacity when it had four pupils, and two more left at Christmas. The school roll has not been above 11 in the last 10 years, and the projected roll by 2012 was just five.

The council estimated it would generate a minimum budget saving of £67,000 by closing Cabrach Primary. It proposed mothballing the school for two years, during which time efforts would be made to regenerate the local community, in conjunction with local landowners and other partners.

"While the council is not entirely surprised by the political decision announced by Ministers, we are disappointed that the management of education in local authorities is now clearly going to be constrained by this decision."

"We will therefore need to engage with ministers with regard to appropriate funding settlements for rural authorities, who it appears – unlike urban authorities – will be prevented by ministers from managing their school estate in the most effective manner," added Mr Farquhar.

Mrs Sierakowska admitted that the last few years had been "stressful and quite depressing" for everyone associated with the school.

"What a complete waste of money by Moray Council. I would like to know how much the whole consultation process cost. They started out with 21 schools, and have ended up closing none."

She said the recently constituted community association, which she chairs, hopes to enter discussions with enterprise company HIE Moray over the possible purchase of land by the community to create more housing. It is also hoped to engage the local landowner in regenerating the community.

The council, she said, did not give due regard to the possibilities of regenerating the community in its consultation process.

The school has received glowing inspectors' reports and provides a first-class education, and she said this outweighed any temporary social disadvantages of her children being in a two-pupil school.

However, Mrs Sierakowski said the long-term goal is to create a sustainable community at Cabrach and increase the number of children at the school. Mothballing it would have denied the community that opportunity, she insisted.

Phil Mowat, chairman of the Moray Rural Schools Forum, said: "I'am pleased for the people of Cabrach and their newly formed community association.

"They have worked hard to secure a future for their local area and community, and I hope this decision is backed up by financial help from the Scottish Government to provide Moray Council the tools with which to promote sustained growth within the area."

c.saunderson@northern-scot.co.uk

* Is the Scottish Government right to block closure of Cabrach Primary School? Go to 'The Big Vote' to have your say.

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