Schools inspectorate Estyn is urging local authorities to cut the number of empty places in classrooms, saying that money is being wasted.
It says no local authority is achieving the government's targets of no more than 10% surplus and the number of unfilled places has gone up in the last five years
Despite the removal of some surplus places, local authorities have been slow to identify and complete projects which could lead to significant savings.
More work needs to be carried out by local authorities and the Welsh Government to assess the financial and education impact of previous school rationalisation schemes .
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