AoC responds to the Autumn Budget

Responding to today's Autumn Budget, David Hughes, Chief Executive, Association of Colleges, said: "There were no surprises in the Chancellor's budget speech today, with no new investment for further education colleges. It felt like a budget aimed to calm the markets and set the parameters for a tough spending review in 2027. That's not surprising given the global instability and the financial position of the country. 
 
"The good news for colleges is that the extra money announced this summer - to fund extra 16-18-year-old students, and support college pay - is secure for this academic year and next. Alongside that, the Chancellor ruled out another austerity drive which would have hit public services, including colleges. That might sound like a small win, but it will be a relief to every college leader. 

"The focus in terms of funding now has to be on the Spending Review where the Chancellor has set out clearly that he will consider how to implement the recommendations of the Milburn review - looking at reducing the number of young people who are not in education, employment or training (NEET) - and the Timms review - looking at how to reform Personal Independence Payments, in order to get more people into work. To help, he made one small statement about introducing new 'preventative departmental expenditure limits' which should help him invest in colleges to support more young people to avoid becoming NEET in the first place as well as helping those who are NEET get into work through purposeful learning and training in colleges.

"The announcement of tax-retaining powers for elected mayors will make devolution feel even more secure, and put even more power into the hands of mayors. College leaders will want to ramp up the work they are already doing to be the very best strategic partners they can be with their mayors, and show how they already deliver on their mayor's priorities, and could do even more with extra investment."