
Capital funding
Colleges have to seek LSC approval before they are able to embark on any sizeable capital projects, initially seeking permission in at least three stages:
Stage 1: Project feasibility
Stage 2: Approval in Principle
Stage 3: Approval in Detail
Submission for approval at each stage incurs considerable time and costs. The LSC has committed most of its 2009/10 and 2010/11 capital budgets to current projects, leaving all but thirteen Colleges without any funding.
PwC report on capital
Future Capital Asset Funding Options for FE Colleges
Capital Reference Panel
The AoC/LSC Capital Reference Group was established following the publication of the Foster report at the request of the Secretary of State, John Denham. The group includes representatives from all 9 regions and from College sector groups. The minutes of meetings are below.
Capital Reference Panel Minutes for Speical Mtg 4 June 2010
Minutes of Capital Reference Group Meeting, 28 Oct 2009
Minutes of Capital Reference Group Meeting, 14 September 2009
The papers from the 28 October 2009 meeting are below
AoC Reference Panel On Capital-agenda-28 Oct09
Capital Ref Panel Future Options Agenda Item 4
Capital Ref Panel - Future Work Programme Agenda item 5
Capital Ref Panel - Future Work Programme Agenda item 5 - Annex A
Capital Ref Panel - Future Work Programme Agenda item 5- Annex B - Capital Guidance contents
Capital Task Group final report
Mark Dawe, with Kevin Moir, of Oaklands College released their paper on College capital builds "It's all about affordability!" on 17 September 2009.
Capital Task Group - final report
Capital Task Group - final report appendix
LSC statement on approval for capital builds
Capital scores
The process of determining which projects would receive permission and capital grants was very involved, with scores being allocated to each of the projects considered to be ready to proceed.
Capital scoring for capital projects
AoC Capital summit - prioritisation process
Departmental and Parliamentary reports on capital mismanagement
Sir Andrew Foster was requested to investigate the reasons behind the collpase of the FE capital grant process. His report was published in March 2009.
The Innovation, Universities and Skills Select Committee reviewed the collapse of the FE capital build programme. Phil Willis, chairman of the committee said: "It really beggars belief that such an excellent programme which had showed real success in transforming the further education experience for students was mismanaged into virtual extinction". Their report was published on 6 July 2009.
IUSS committee report "Spend, spend, spend"
The Public Accounts Committee,a scrutiny committee comprised of MPs, released their review of the Sir Andrew Foster report on the capital programme, on 17 July.
Public Accounts Committee report
Capital announcements: written statements and letters
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Written Ministerial Statement - 26 June. List of Colleges with approval for capital |
| Geoff Russell LSC Capital Letter 1 June 2009 |
Capital reference meetings This group was arranged further to the request to AoC and LSC from John Denham, Secretary of State for Innovation, Universities and Skills to create such a group, in response to the recommendation from Sir Andrew Foster in his recent report on College capital.
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PWC report on LSC Further Education Capital Programme, June 2009 - DRAFT |
Capital build survey We sent out a survey on the cost of College Capital Builds to all principals in March 2009, the survey findings are summarised in the report below:
AoC College capital cost report Mar09
College building programme research and statistics: The college building programme began in 2001-02. From 2001-02 to 2008-09, a total of £2.9bn has been spent by the Learning and Skills Council. The following spreadsheet contains a breakdown of the total LSC Grant given to each College
College building programme funding by college since 2001 The Building Colleges for the Future programme saw over £2.3bn invested in projects in 2008-09. The following spreadsheet shows a regional breakdown of where the money has been spent.
Total LSC Grant (£m) by region for capital projects that received funding in 2008-09
Research (conducted by Frontier Economics) commissioned by the LSC, December 2008 Evaluating the impact of capital expenditure in further education
Cost of approved capital projects (AiP): 79 Colleges had projects with approval in principle in Spring 2009, the total LSC grants promised on thse totalled £2.6bn as shown in the table below.
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Approved project cost £m |
LSC grant support £m |
LSC grant % |
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Eastern Region |
417.2 |
271.5 |
65.1% |
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East Midlands |
209.2 |
172.8 |
82.6% |
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London |
536.0 |
386.4 |
72.1% |
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North East |
188.1 |
154.0 |
81.8% |
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North West |
520.6 |
403.7 |
77.6% |
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South East |
462.5 |
393.3 |
85.1% |
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South West |
284.9 |
217.6 |
76.4% |
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West Midlands |
324.8 |
237.9 |
73.2% |
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Yorkshire & Humberside |
527.4 |
393.2 |
74.6% |
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Cross-regional |
57.4 |
29.3 |
51.1% |
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Total |
£3,528.2 |
£2,659.9 |
75.4% |
Contact details: Julian Gravatt, Assistant Chief Executive and Director of Research and Development, Robert Russell, Financial Development Manager Geeta Patel, Research Officer Tel. 020 7034 9900
The Learning and Skills Council announced Friday 29 August that twelve Colleges will receive funding grants to proceed with their capital building projects, with future announcements expected on the outcome of discussions with Manchester College and Skelmersdale Ormskirk College.
The twelve Colleges whose funding has been agreed are:
Barnsley College; Bournville College; Furness College; Hartlepool College of Further Education; Kirklees College
Leyton Sixth Form College; North West Kent College; St Helens College; Sandwell College
South Thames College; Tresham Institute of Further and Higher Education, Corby; West Cheshire College
Sir Andrew Foster was requested to review the collapse of the FE capital funding programme. His report was published in March 2009.