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| Version 1 | Version 2 |
|---|---|
| Colleges face £100m projects loss | Colleges face £100m projects loss |
| (about 1 hour later) | |
| Colleges in England have indicated they face losing more than £100m because of delays in getting funding they say was promised for refurbishment. | Colleges in England have indicated they face losing more than £100m because of delays in getting funding they say was promised for refurbishment. |
| Some 144 building projects are on hold while funding is being reviewed by the Learning and Skills Council (LSC). | |
| The Association of Colleges asked how its members were affected and had more than 80 responses. | |
| Further education under-secretary Sion Simon said a review had been ordered into how the situation came about. | |
| The responses to the Association of Colleges survey show at least £100m would have to be written off if colleges' capital projects did not get LSC backing. | |
| Some of the sums to which the colleges are committed are relatively small but 15 are between £2m and £5m, and 10 are more than £5m. | Some of the sums to which the colleges are committed are relatively small but 15 are between £2m and £5m, and 10 are more than £5m. |
| 'Extraordinary incompetence' | 'Extraordinary incompetence' |
| The total could top £200m. | The total could top £200m. |
| Asked what extra costs they would incur if their projects were delayed or staged over five years, the answers again covered a wide range but added up to £151m at the very least. | Asked what extra costs they would incur if their projects were delayed or staged over five years, the answers again covered a wide range but added up to £151m at the very least. |
| Shadow universities secretary David Willetts told the BBC the situation represented "quite an extraordinary catalogue of incompetence" on behalf of the government. | Shadow universities secretary David Willetts told the BBC the situation represented "quite an extraordinary catalogue of incompetence" on behalf of the government. |
| Mr Willetts said colleges were "actively encouraged" by ministers to go ahead with works and "now they are all at a standstill because of this extreme mismanagement". | Mr Willetts said colleges were "actively encouraged" by ministers to go ahead with works and "now they are all at a standstill because of this extreme mismanagement". |
| We are absolutely not willing to see colleges go bust Sion SimonFurther education under-secretary | |
| He said according to minutes from meetings, the Learning and Skills Council was worried that it could face legal challenges because they had given assurances to colleges over the funding. | He said according to minutes from meetings, the Learning and Skills Council was worried that it could face legal challenges because they had given assurances to colleges over the funding. |
| Mr Willetts said: "We think ministers need to come clean on the scale of this problem, at every stage we've had to extract information from them using freedom of information requests. | Mr Willetts said: "We think ministers need to come clean on the scale of this problem, at every stage we've had to extract information from them using freedom of information requests. |
| "Despite what ministers say, these colleges are not going to be able to improve their facilities at a time when they desperately need them." | "Despite what ministers say, these colleges are not going to be able to improve their facilities at a time when they desperately need them." |
| Mr Simon told the BBC he conceded the LSC had given approval to funding that it was now clear could not be met and as a result the government has asked trouble-shooter Sir Andrew Foster to investigate the situation. | |
| He said: "Mistakes have been made and that's why we've appointed Sir Andrew Foster to look into those mistakes and why." | |
| Barnsley principal Colin Booth is contemplating financial disaster | |
| He said any colleges who were concerned they were in a precarious financial position as a result of the short-fall should not hesitate in contacting the LSC. | |
| "We will expect the LSC to deal urgently with their situations. We are absolutely not willing to see colleges go bust," he added. | |
| Barnsley College, in South Yorkshire, is half demolished, with rebuilding work due to begin in May. | Barnsley College, in South Yorkshire, is half demolished, with rebuilding work due to begin in May. |
| Its principal, Colin Booth, said it looked as though the contractors would have to make people redundant. | Its principal, Colin Booth, said it looked as though the contractors would have to make people redundant. |
| He said the situation "could end up bankrupting the college" because he had taken out bank loans on the basis that the work would be done and students - with associated funding - would be taking up places in the new buildings. | He said the situation "could end up bankrupting the college" because he had taken out bank loans on the basis that the work would be done and students - with associated funding - would be taking up places in the new buildings. |
| Without the buildings, he has no student income and no way of repaying the loans. | Without the buildings, he has no student income and no way of repaying the loans. |
| Others are in a similar position, facing insolvency with students packed into temporary accommodation. | Others are in a similar position, facing insolvency with students packed into temporary accommodation. |
| The Learning and Skills Council, which has approved eight projects, has said that "it has always been perfectly clear that full funding and final approval was not guaranteed and that colleges were proceeding at their own risk". | The Learning and Skills Council, which has approved eight projects, has said that "it has always been perfectly clear that full funding and final approval was not guaranteed and that colleges were proceeding at their own risk". |
| It is trying to work out how to prioritise all future projects, and to understand what has already been spent by the colleges involved. | It is trying to work out how to prioritise all future projects, and to understand what has already been spent by the colleges involved. |