Work was due to start on site at Woodbridge High School in Woodford Green this month.

But Redbridge Council has written to parents telling them that the project is now looking for a new builder.

The letter states: “Work on the expansion of the school was due to begin this school holiday.

“Regrettably Redbridge Council has been forced to end its agreement with the building contractor appointed to carry out the expansion project because they have now indicated that they cannot complete the works for the sum of money that they stated would be the price for the scheme when they tendered for the work.

“Despite this set back the local authority has confirmed that it still wishes to proceed with the expansion and will shortly be arranging for another building contractor to complete the work.”

Kent contractor Neilcott Construction was listed as original winner of the deal by construction information specialist Glenigan earlier this year.