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02/07/2009

LSC Announces 13 Colleges Go Through To Next Stage Of Building Programme

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The Learning and Skills Council (LSC) has announced a shortlist of 13 further education building projects which are proceeding to the next stage of development.

The 13 projects have been selected from over 180 projects submitted to the LSC as part of the latest round of the FE Capital programme.

The LSC has been working in close consultation with the sector to use transparent and objective criteria to inject funds where they will have the greatest impact for learners, employers and communities, to get building work started quickly and to get the best value for the taxpayer. This consultation was built upon recommendations made by Sir Andrew Foster in his review of the FE Capital building programme.

The 13 colleges will now be asked to make cost reductions to their initial project plans, to maximise borrowing within prudent limits, and to examine other possible sources of funds, while at the same time maintaining the planned project benefit for future learners and enabling construction to proceed rapidly. The aim of the LSC is to deliver best value for money for the taxpayer and to fund the maximum possible number of projects.

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The 13 colleges are:
  • Barnsley College
  • Bournville College
  • Furness College
  • Hartlepool College of Further Education
  • Kirklees College
  • Leyton Sixth Form College
  • Manchester College – Wythenshawe
  • North West Kent College
  • St Helens College
  • Sandwell College
  • South Thames College
  • Tresham Institute of Further and Higher Education, Corby
  • West Cheshire College
Discussions between these colleges and the LSC will now take place as a matter of urgency. All 13 colleges will receive funding only if the overall cost is reduced. The reductions required are significant but manageable.

For colleges which have not been selected to proceed this year, the next steps will start this autumn when we will further consult with the sector to agree a robust, fair and transparent process for prioritising the capital investment programme for the next Spending Review period starting in 2011/12. The size and scope of the programme will depend in large part on the outcome of the next Spending Review.

Many colleges have incurred development costs for projects which will not now be going ahead in the short term. We have a contingency fund to mitigate the impact of potential aborted costs on the financial health of colleges. This will be limited to those appropriately incurred within the terms of the capital programme.

(CD/JM)

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