Six local authorities have won the right to challenge the government's decision to scrap the Building Schools for the Future Programme (BSF).
According to Construction Enquirer, Luton Council, Nottingham City Council, the London Boroughs of Newham and Waltham Forest, Sandwell Metropolitan Borough Council and Kent County Council will fight the decision at the High Court in the new year.
Luton is facing a bill of £3.6 million due to aborted preparatory work after the building of two schools - worth £45 million - was halted, the construction website said.
Councillor Tahir Khan, executive member with responsibility for children's services at Luton Council, was quoted by the website as saying: "This late cancellation has left the Council with liabilities totalling £3.6 million for the abortive work already done and therefore having to find further savings from an already scarce budget, which ultimately will mean cuts to more services and jobs."
"We are not disputing the secretary of state's right to make a decision to withdraw funding for the Building Schools for the Future Programme but we believe the decision reached was irrational and that our individual circumstances were not taken into account," he added.
In July this year, education secretary Michael Gove announced the scrappage of BSF, meaning funding for 715 schools would be stopped.