By Neil Merrick
The head of the government agency that funds further education has quit following a major fiasco over the modernisation of colleges.
The head of the government agency that funds further education has quit following a major fiasco over the modernisation of colleges.Mark Haysom, chief executive of the Learning and Skills Council, announced he was resigning on March 23 – three months after the LSC was forced to suspend its capital programme because it had run out of money.
Haysom, who was appointed in 2003, said he took full blame for the problems that have beset the programme since December, which left 144 colleges uncertain whether they could proceed with rebuilding projects.
Sir Andrew Foster, former controller of the Audit Commission, is due to report to ministers shortly over the estimated £5.7bn shortfall in the Building Colleges for the Future programme.
Haysom, who will now forgo an estimated £250,000 payoff when the LSC is dissolved next year, said it was clear that Foster’s report would confirm management failures. ‘No matter where those mistakes have been made, and no matter how many people have been involved in the capital programme, as the chief executive of the LSC, I am, of course, finally accountable,’ he said.
Seventy-nine colleges that had projects worth £2.7bn approved in principle are still months away from any work starting while a further 65 have carried out feasibility studies and are waiting to hear whether they will receive up to £3bn.
David Collins, president of the Association of Colleges, said problems over capital funding were overshadowing the extra money that had been invested in FE since 1997. ‘What should be seen as a PR triumph is turning into a bit of a disaster due to mismanagement by the LSC,’ he said.
At a meeting this week, colleges agreed to ask local authorities to lend them money to get building work started. Collins said councils might be able to get a better return from colleges than if they invested elsewhere.
From April 2010, when the LSC is scrapped, councils will fund 16–19 education in colleges and schools. Geoff Russell, a former partner at KPMG, is taking over immediately as the LSC’s acting chief executive.
In a letter sent to FE principals this week, further education minister Siôn Simon said colleges that face serious financial difficulties should seek advice from their local LSC and draw up plans that ensure they meet financial obligations.
