First FE building bids approved

2 Jul 09
Thirteen further education colleges have been promised grants for new buildings - providing they cut their costs and increase borrowing.
By Neil Merrick

Thirteen further education colleges have been promised grants for new buildings – providing they cut their costs and increase borrowing.

The schemes were selected by the Learning and Skills Council from more than 180 submitted for the ill-fated Building Colleges for the Future programme, which was suspended in December when the money ran out.

Ministers promised in the Budget that an extra £300m would be allocated for FE capital projects this year. However, it was clear that most colleges, including those whose schemes had already been approved in principle, would be disappointed.

Announcing the short list of 13 colleges on June 26, the LSC called for ‘significant but manageable’ reductions in costs and said colleges must maximise borrowing ‘within prudent limits’. They should also look at other potential sources of funding.

LSC chief executive Geoff Russell said the projects had been selected because of the benefits they would bring to their communities and learners. ‘While they show good value for money and excellent links with third party funding, we will ask each of these colleges to find additional cost savings in order that we can afford to fund additional projects,’ he added.

Among the chosen 13 are Barnsley College, where work on a £70m capital improvement programme was suspended after LSC funding failed to materialise. Barnsley’s principal, Colin Booth, was among the leaders of the campaign to restore funding.

The backlog of bids for the BCF programme is estimated to be about £5.7bn. In March, its collapse led to the resignation of then LSC chief executive, Mark Haysom. Both the LSC and the former Department for Innovation, Universities and Skills were later criticised in a review by Sir Andrew Foster.

Principals of the shortlisted colleges are due to meet LSC officials to discuss the changes they need to make to their bids. The Association of Colleges called for help for other colleges, which spent more than £220m preparing bids that they were led to believe would be successful.

The LSC will start consulting over the future of the BCF programme later this year. Colleges experiencing serious financial problems in the meantime can apply to a contingency fund.

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