MPs blame Government agency for college buildings cash crisis

Jul 17 2009 by Jonathan Walker, Birmingham Mail

COLLEGES have lost millions of pounds because of “catastrophic mismanagement” by the Government agency responsible for funding them, a damning report warns today.

Those affected include Sutton Coldfield College, which was promised cash for a £42 million campus on a former dairy site in Perry Barr – only to have the funding withdrawn.

A report by MPs concludes that officials encouraged colleges to plan expensive building programmes, even though the money did not exist, and that the Government failed to oversee the college-building programme.

The findings were published by the Commons Innovations, Universities, Science and Skills Committee, which has completed an inquiry into the funding fiasco which affected 79 colleges across the country.

The Learning and Skills Council, the Government body which allocates money, had promised colleges cash for rebuilding, but put the projects on hold in January.

The agency had approved 79 projects requiring grants of £2.7 billion, when it only had £500 million to offer. It had also encouraged applications from another 65 colleges, which were asking for £3 billion.

Just 13 schemes were allowed to go ahead, including Bournville College’s planned move to the former MG Rover plant in Longbridge and Sandwell College’s relocation to a £85 million centre in West Bromwich.

But the remaining colleges have already spent £250 million on schemes which have now been delayed indefinitely.

The MPs found that LSC officials told principals they had a “once-in-a-generation opportunity” to build new campuses.

Sutton Coldfield MP Andrew Mitchell (Con) said: “Our colleges have been plunged into financial turmoil because of the incompetence of the ministers who were supposed to be overseeing the work of the Learning and Skills Council.”