Red tape cut to allow
colleges freedom to manage affairs as independent bodies
The Government
drive to cut red tape and give organisations greater freedom has
been boosted by the Office for National Statistics (ONS) decision
that further education colleges should no longer be classified as
part of central government, Skills Minister John Hayes announced
today.
The Government has worked hard to ensure that FE colleges have
the freedom to manage their own affairs as independent bodies and
the ONS has acknowledged this by changing the public sector
classification they made in October 2010.
Public sector classification brought FE colleges into government
accounting boundaries, which could have had significant
implications for the financial decision making and reporting of colleges.
Skills Minister John Hayes said:
“I am delighted at this very positive news which we have been
working hard to achieve over the last year.
“The Government is committed to cutting red tape so that further
education colleges have the freedom they need to make their own
judgements on how to manage their affairs for the benefit of
learners, employers and wider communities.”
Martin Doel, Chief Executive of the Association of Colleges said:
“We are extremely pleased that the Government has succeeded in
getting this decision reversed and has delivered on its promise to
afford further education colleges greater autonomy.
“Allowing colleges to maintain their own affairs is not only
beneficial to the institutions themselves, it also brings more
clarity to the way public money is spent.”
Lynne Sedgmore CBE, Executive Director of the 157 Group said;
“The 157 Group is delighted that ONS have made the constructive
decision to reclassify colleges into the private sector.
“This decision aligns with the freedoms and flexibilities
given by John Hayes and his department and enables colleges to
deliver Governmental priorities and initiatives.
“Clearly the voice of colleges and our business communities
have been listened to, and responded to, on this critical matter
to good effect”
Through the Education Act 2011 the Department for Business,
Innovation and Skills and the Department for Education removed a
wide range of restrictions and controls on further education and
sixth form college corporations, putting them on a similar footing
to charities operating within the independent/private sector.
These provisions will come into force in April 2012.
Having reviewed these changes, the ONS has concluded that they
are sufficient to remove public sector control over FE College and
sixth form college corporations, and they will consequently be
reclassified to the private sector.
Notes to Editors
On 14 October 2010 the Office for National Statistics (ONS)
announced the decision to reclassify general further education
colleges as part of central government for the purposes of
national accounts. On the same date ONS announced that sixth form
college corporations were classified as Local Government entities
for national accounts purposes.
The ONS classification committee considered the case BIS
submitted in December 2011 setting out the range of measures taken
to remove government controls on colleges. ONS notified HM
Treasury on 23 February 2012 that Further Education Colleges and
Sixth Form Colleges will be reclassified to the private sector.
The private sector classification will apply from April 2012, when
the relevant provisions of the Education Act 2011, concerned with
college freedoms, come into force.
This reclassification is provisional upon ensuring that there
are no other public sector controls in other documentation, such
as the funding agreements, and keeping under review the use of
remaining government powers within legislation.
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