To ask the Secretary of State for Innovation, Universities and Skills if he will bring forward proposals to reimburse further education colleges for the interest they pay on money borrowed to finance their capital programmes; and if he will make a statement. (254013)

Since 1997, this Government has invested £2.4 billion in redeveloping and modernising further education colleges. In addition we have plans to invest a further £2.3 billion in the next three years. In total, since the programme began, nearly 700 projects at 330 colleges have been agreed.

The Learning and Skills Council (LSC) administers the further education capital budget on behalf of the Department.

The LSC, through its approval process, agrees an appropriate level of capital grant support based upon a range of factors including the affordability of the proposal to the college.