Education Secretary Michael Gove will tell MPs today that Labour’s flagship scheme to rebuild the country’s schools is being wound down.

It is believed around 700 projects to build or renovate school sites are likely to be scrapped.

Another 500 schemes, where work is at advanced stage, will carry on.

Cutting the building projects will save around £1 billion a year over the next five years.

Gove will tell MPs that the decision is not solely about saving money, arguing that the BSF scheme was badly designed and implemented.

Government has attacked the scheme for being over bureaucratic and delivering schemes that are late and over budget.

Contractors are hoping Gove will be specific about which schemes will be dumped.

One education specialist told the Enquirer: “We know bad news is coming but we just need to know exactly how bad and who will be hit.

“The Government needs to make a firm decision rather than this leaking out in dribs and drabs.

“There are all sorts of BSF schemes at different stages of the procurement process.

“We just want to know on a region-by-region basis which ones will be built and those that won’t.”

The BSF news comes as departments are being told to draw up plans for cuts between 25 and 40%.

Transport is expected to be among the hardest with new road building set to come to a halt.