Ministers must devise a long term plan for schools funding or face a repeat of this year's crisis, MPs have warned.

In its report published on Thursday, the education and skills select committee called for greater clarity within the system.

Schools in England faced deficits of up to £500,000 each, despite a funding increase from the government of £2.7 billion.

MPs argued in their report that a new funding formula was implemented "without knowing how schools would be affected".

They called on the Department for Education and Skills to hold a survey of authorities to gauge local needs.

"The government had hoped that the new system of funding would be easier to understand than the old, and therefore would bring clarity," said the report.

"This year's events suggest not only that that has not happened, but that it might be a forlorn hope, given the variables that the formula is attempting to reconcile.

"However, earlier announcement of decisions on education financing brings some welcome certainty for schools and LEAs, and we expect the government to continue to pursue this aim."

While ministers argued that local authorities were holding the money back, councils claimed they had never received it.

In addition, schools faced higher wage bills, higher pension and National Insurance contributions and the Workload Agreement, allowing assistants to take certain administrative tasks away from teachers.

"For the future, if the government intends to continue to seek greater control over the detailed distribution of funding to schools, it needs a far superior information system, which needs to be predictive," the report added.

"If it is unable to achieve that, the government needs to understand the limitations under which it is operating, and so be more cautious about what it promises on schools funding."

School standards minister David Miliband welcomed the report.

"We will consider their recommendations carefully and make a full response in due course," he said.

"We fully recognise the difficulties this year. The big problem stemmed from reductions in the Standards Fund, late planning of budgets and the lack of a funding floor for schools. Each is being tackled. Our goal is funding stability and predictability for schools.

"The long term settlement of teachers' pay is a big step forward. We are working hard with schools and LEA representatives to make sure the problems of this year are not repeated."