The report says extra funding for music helped thousands of pupils

Estyn said pupils benefited from activities paid for by the assembly government's music development fund.

The end of the funding in 2005 means school music services now face an "uncertain future", Estyn claimed.

The assembly government said it was for local authorities to decide the level of music funding in their own areas.

According to Estyn, the music development fund - set up in 1999 to reverse a decline in music in schools - helped more than 60,000 young people by financing a growth in musical activities including workshops and master classes.

Music services now have to bid for local authority funding every year and they are in competition with other priorities Susan Lewis Chief inspector of education

But from April 2005, the money that had previously gone to the music development fund was transferred into general funding for local authorities.

Estyn's report, published on Monday, said the end of the funding programme may leave many local authorities unable to support music programmes at levels which have brought success.

It said nearly all of Wales' 22 local authorities have made cuts in their music service provision.

In a number of areas, budgets for buying musical instruments and the amount of music teaching time have been reduced, while some music festivals are no longer held and some specialist tuition has ceased.

'Adverse effect'

Susan Lewis, chief inspector of education and training in Wales, said: "A wide range of projects helped many young people across the country to develop their music skills.

"More pupils gained qualifications in music at GCSE, AS and A-level thanks to the music development fund.

"However, music services now face an uncertain future.

"The reduction in funding recently has had an adverse effect on the range of tuition and musical activities that they [schools] can provide.

"Music services now have to bid for local authority funding every year and they are in competition with other local priorities."

'Local needs'

A spokesman for the Welsh Assembly Government, which commissioned the Estyn report, welcomed its publication.

He said: "It highlights excellent work carried out in music and the use of the �17m in funding over the last six years.

"The music development grant has been transferred to the local government grant for 2005-6.

"Local authorities decide what level of grant should be given to music based on their local understanding, needs and priorities.