Plans to build a new high school as part of the Ipswich Garden Suburb have been scrapped by Suffolk County Council because of the falling birth-rate.
Instead it plans to expand Northgate High and Ormiston Endeavour Academy to take students from the new development which will eventually have 3,500 homes.
Plans to build three new primary schools as part of the development are going ahead.
The new 600-place school was due to be built in the Redhouse Neighbourhood of the Suburb near Westerfield railway station.
It was expected to be one of the last elements of the development to be completed - not until well into the 2030s.
The county said the cost of the new school would have been at least £30m, and it was clear that its costs would no longer be covered by the development of the Suburb.
Building extensions to the two existing schools would cost about £20m between them and they should be completed by 2027.
Suffolk County Council cabinet member for education Andrew Reid said: “With all new housing, it is essential that we match the number of school places with the predicted number of children and young people that may move in and to cover future need.
"This may mean we build new schools or explore the feasibility of expanding existing schools.
“In this case, expanding Northgate and Ormiston Endeavour seems to be the best option.
"Not only is it more economical, but both schools would benefit from the funding from additional pupils - and the new students would benefit from a wider range of opportunities.”
A spokeswoman for the county council said borough planners had been kept in touch about the discussions about the school.
However the borough's portfolio holder for planning, Carole Jones, said she had not been aware that a decision had been made until we contacted her.
She said: "It sounds as though SCC are scrutinising future demand for school places and how best to accommodate the predicted numbers.
"They are the authority with responsibility for schools, and we await the final outcome of their deliberations."
Northgate and Ormiston Endeavour currently have 1,260 and 900 students respectively - Northgate has a large sixth form - and the proposal is that 600 extra spaces should be created across the two sites.
Conservative county and borough councillor Sam Murray represents the homes near Henley Road and the start of the Henley Gate development.
She said she understood why the decision was made, especially with the falling birth-rate, but hoped that in the long term space would be left that could be used if a new school was needed.
"At this stage it's not something I have very strong feelings about. But I don't want us to be hemmed in too much if at some point in the future it becomes clear that a new school is needed."
But local Liberal Democrat councillor Inga Lockington was clear in her mind: "I'm delighted. The school was planned for the wrong place - that area floods badly.
"And a 600-place school is too small for a town like Ipswich. It makes much more sense to expand two good schools on the edge of the garden suburb."
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