Peacehaven waited 30 years for its new school. Now parents have been told it is too small to take all their children.

The £30 million Peacehaven Community School is turning pupils away just months after opening because it is over-subscribed.

Seventeen local families have been told there is no room for their children. They say East Sussex County Council underestimated demand.

The secondary school, which opened last September, was paid for using private finance initiative (PFI) cash.

It was designed for 750 students but is already expecting 900 by 2005.

More than 200 youngsters applied to start in September but ten were turned away for living outside the catchment area.

A further 17 families from within the area were left bitterly disappointed.

Sharon Jago, whose son Simon, 11, missed a place, said: "All children living in Peacehaven have a right to go to this school."

Mrs Jago, of Ashington Gardens, Peacehaven, warned: "This will tear the community apart. It will set friends against friends and children against children."

Janet Taylor's daughter Chloe, 11, is another victim of competition for places.

Mrs Taylor, of Downland Avenue, Peacehaven, said: "They knew from the start the figures didn't tally by adding up all the classes from the three feeder schools.

"The children are absolutely devastated at the thought of being split from their friends."

Both families live within 15 minutes walk of the school. Their children must now travel to Tideway Community School, in Newhaven.

County councillor for Peacehaven John Livings admitted the situation would deteriorate.

He said: "We are going to have an ongoing problem as more and more young families move into town."

Baldev Soni, chairman of governors for the launch of the school, said: "I remember saying the school should be bigger.

"I felt demand had been underestimated and my view has, unfortunately, been proved right."

A council spokesman said: "It is crucial there are not more than 900 pupils on the roll because of the pressure this would place on buildings, the financial arrangements and on space for sport.

"Parents can ask the council to review decisions and four places have been held back for use at the review stage."