The Capital Review team was set up in the wake of Education Secretary Michael Gove’s cull of more than 700 projects under the BSF programme.

Now the team believes work could go-ahead on these projects if clients and contractors revamp procurement methods and use more modular construction techniques.

Gove will consider the report’s findings during the run-up to next month’s Comprehensive Spending Review.

It believes the solution to getting more built with less cash lies in off-site manufacturing with the majority of work set to be procured through the academies framework.

One education specialist told the Enquirer: “This looks like some positive news at least rather that the original announcement to scrap everything.

“Of course efficiencies could be made in the BSF programme but the answer was not to dump the lot.

“Hopefully this report will provide some middle ground where work can go-ahead but everyone realises things are being done on a leaner budget.”

Gove said: “We will work with councils, sponsors and the construction industry to ensure we bear down on costs and bureaucracy so every new school is built in as cost-effective and efficient a way as possible.”