A MULTIMILLIONAIRE has stepped in to save an independent prep school.

Businessman Paul Sykes has paid out an undisclosed sum to secure the future of Belmont Grosvenor, near Harrogate, North Yorkshire.

The day school for children aged three months to eleven years was facing an uncertain future due to financial problems.

Mr Sykes, who lives near Ripon, North Yorkshire, has agreed a rescue package with governors of the 232-pupil school.

He said: "I am investing in the most important manufacturing unit in Yorkshire and that is the production of well educated and well balanced children.

"What I am doing is securing its future.

"There have been rumours about the school closing for a while, which has led to pupil numbers declining."

As part of the rescue package, Mr Sykes, who already gives financial support to a several other rural schools in Yorkshire, will own the Belmont Grosvenor property at Swarcliffe Hall, Birstwith.

However, the day-to-day management of the school will remain the same.

The school says it will ultimately have the option to buy back the property when funds permit.

Fran Trowell, chair of governors, has welcomed the deal.

She said: "I am confident that Mr Sykes' experience and financial commitment to the school will enable us to continue to offer the very highest level of education to our children to enable them to achieve their full potential in all aspects of school life.

"It is an outstanding school and with Mr Sykes' support it will become even more so."

Mr Sykes built the Meadowhall shopping complex in Sheffield.

In 1998, he sold his internet service provider business, Planet Online, for £85m.