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Controversial proposals to close down Rhydri Primary School will move to the next stage, senior councillors have decided.

Caerphilly County Borough Council argues the school, in Rudry, has been unable to balance its budgets despite years of support.

It blames falling birth rates for a drop in pupil numbers, and claims many of the children currently attending the school are from outside the catchment area.

But the proposal to shut down the school has been challenged by parents and some governors who believe Rhydri Primary can be made viable.

The ongoing dispute was raised at a Caerphilly Council cabinet meeting, where members discussed the findings of a recent consultation exercise.

The vast majority of the people who took part in that consultation (46 out of 52 respondents) said they did not support the proposal to shut the school.

The consultation also included the thoughts of some Rhydri Primary pupils, who said they appreciated the school’s small size, helpful teachers and quieter, more intimate atmosphere.

Cllr Carol Andrews, the cabinet member for education, said the council had judged “falling rolls” at the school “are predicted to decrease further in future years” and the school “could no longer maintain a balanced budget”.

She also read out questions from a governor, who alleged a marketing campaign launched by parents – in a bid to attract more families to the school – had been “destined to fail” because the council had not made it clear the proposed closure was based on local birth rates.

Sue Richards, the council’s head of education planning and strategy, disputed this and told the meeting officers had been “very clear on pupil projections” and birth rates with governors.

Cllr Chris Morgan, a cabinet member who also represents the Machen and Rudry ward, asked whether officers “can give them longer to achieve a balanced budget” at the school.

Ms Richards said the council had given Rhydri Primary five years, instead of the usual three, to “turn it around” but said it was “unachievable”.

“I believe we have offered a lot of support,” she told the meeting.

If Rhydri Primary does close, the nearest school able to accommodate all its pupils is St James Primary School on the outskirts of Caerphilly.

Cllr Elaine Forehead told colleagues Rhydri’s pupils would be “welcomed by all” at St James in the event of a closure.

Cabinet members voted unanimously to move to the next stage of the proposals and issue a statutory notice, offering partners a further opportunity to have their say on the school’s future.