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Further Education: Finance

Volume 508: debated on Thursday 8 April 2010

To ask the Minister of State, Department for Business, Innovation and Skills what estimate he has of the number of colleges in (a) England and (b) London which incurred costs in preparing capital bids to the Learning and Skills Council which were not proceeded with; and what estimate has been made of the total financial effect on those colleges in (i) England and (ii) London of the capital bids not proceeding. (325569)

171 colleges in England, 25 of which are in London, incurred property costs on projects not currently proceeding. All colleges were eligible for normal grant support towards these costs as set out in the Learning and Skills Council (LSC) Capital Handbook and additional capital support was also made available to 42 of the colleges experiencing the most serious financial difficulties as a result of their aborted capital programmes. In total, the net cost to colleges was £126 million, with colleges in London incurring costs of £27 million.

Since 2001 LSC grant support to projects has amounted to £3.4 billion.