Funding runs out on college’s £80m dream

The Oldham College

OLDHAM College’s £80 million redevelopment hangs in the balance after ministers admitted funding has run out.

The massive overhaul of the Rochdale Road campus, due to start in June, is among building projects at 79 further education colleges in England that have been halted.

They were all given approval in principle by the Learning and Skills Council (LSC), which funds further education, for projects work totalling almost £3 billion. Another 35 colleges had also been asked to draw up projects.

An investigation is now being carried out into what went wrong, what projects can be funded and when.

However, there are fears that colleges which were encouraged to start work on their projects, had borrowed money or had committed money could be forced to write off millions of pounds. In some cases they could be forced into technical insolvency.

Oldham College has planning permission to raze seven buildings and replace them with six new blocks.

Facilities included a sports hall, construction training, high-tech hair and beauty salons, purpose-built classrooms and a corporate training suite

Advance building work was due to start in January ahead of the main construction in June.

Principal Kath Thomas is confident that the development will go ahead — and called for the support of Oldhamers.

She said: “We are confident that our case for a new college campus is an exceptionally strong one.

“We are putting forward this case both locally and nationally. The support of all Oldhamers would be greatly appreciated.

“Although delays are inconvenient, they are not having an impact on our learners.”

Oldham College would not disclose how much money it had spent on its redevelopment, but stressed that it was not in financial and organisational difficulties.

No construction work has started and Ms Thomas added: The college’s current financial position is category ‘A’, the strongest rating that can be given.

“There is very detailed monitoring of the financial elements of our project by both managers and governors.”

The Conservatives claim that the Government has known about the funding problems since at least November. Shadow universities and skills secretary David Willetts said: “It is a quite extraordinary catalogue of incompetence. Colleges were being actively encouraged by ministers and by the LSC to go ahead with these programmes.”

Further Education Minister Sion Simon described the situation as “not acceptable”.

He said the Government expected the LSC to ensure that any colleges facing financial difficulties would not be allowed to go into insolvency.