Sir Andrew Foster
publishes independent report to put the Capital Programme back on track
NEWS DISTRIBUTION
SERVICE News Release issued by COI News Distribution Service on 1
April 2009
Issued by the News
Distribution Service on behalf of The Review of the Capital
Programme in Further Education
Today, Sir Andrew Foster is publishing his report, following his
independent review of capital programme management, as requested
on 28 January 2009 by the Secretary of State for Innovation,
Universities and Skills and the Chair of the Learning and Skills Council.
Sir Andrew, the former chief executive of the Audit Commission,
has reviewed the circumstances that have led to the current
position of the Building Colleges of the Future programme, managed
by the Learning and Skills Council (LSC) and reports on what
lessons can be learned.
Within this, he has assessed existing LSC processes, and
considered how they can be enhanced to deliver more effective
management of the programme in the current economic environment
and beyond.
The programme has had some success to date, funding nearly 700
projects at 330 colleges. Government investment in capital
projects has so far amounted to £2.3 billion between 2007 and
2010, benefitting many students, staff and communities.
However, on the 17 December 2008 the Learning and Skills Council
(LSC), who manage the capital programme, declared a three month
moratorium on further projects while it conducted a review. A
large surge in college proposals had opened an untenable gap
between the resources identified and the cost of projects under
way or in the pipeline.
The moratorium caused consternation and great disappointment in
further education colleges and continuing uncertainty about the
future. When the LSC completed its review of the project pipeline
on 4 March 2009 it was evident that 253 projects were already
under way or fully approved.
Eight projects deferred from October were also given the
go-ahead. A further 79 projects had already received the first
stage of approval in principle, with a requirement of £2.7bn from
the LSC. A further £3bn would be needed for the 65 colleges that
had submitted proposals for approval in principle.
Sir Andrew Foster said: "I have tried to give a full, honest
and open account of what has happened, because it is in all our
interests to understand and learn. I have met with many
representatives of the college sector and the governmental and
other national bodies involved with the programme, and I am
grateful for the time people have given to this."
He concluded: "The responsibility of DIUS was to determine
and monitor the implementation of broad policy. Effective
implementation was the role of the LSC. There were warnings of
overheating as early as February 2008, but there was delay and
confusion in addressing them.
"Then, towards the end of the year, the extent of the
problem was finally recognised and the moratorium put in place.
There were further failures in the way this was communicated to
the sector. At the heart of the problem is the absence of a
proper long term financial strategy and inadequate management,
information and monitoring.
"I have been forced to conclude that the crisis was
predictable and probably avoidable. Certainly, it could have been
mitigated if action had been taken earlier. The final confusion in
communication made a bad situation worse.
"I recommend a package of measures to ensure speedy recovery
in confidence and project policy for the future of the capital
programme. This is focussed on a needs-based rather than
demand-led approach. It involves improved engagement and
consultation between DIUS, the LSC and the college sector.
Planning and mapping of potential needs must be enhanced, with
more realistic assessments put in place.
"Talks should be held with HM Treasury to reinforce the
importance of skills development in the context of national
economic recovery, and global competitiveness, and to review
resourcing for the continuing capital programme. It is essential
that a robust recovery plan is demonstrated. Future development
must take place in the context of a comprehensive and competent
financial strategy that supports needs-related planning."
Notes to Editors
1. Sir Andrew Foster has carried out two previous reviews of the
further education sector, including the review of the role of FE
in 2004. Before that, he led the Bureaucracy Review Group for the
Leaning and Skills sector. He served as Chief Executive of the
Audit Commission for England and Wales between 1992 and 2003. In
December 2008, the RSA announced that Sir Andrew Foster will chair
a new independent commission looking at the future of public services.
2. In his review of Building Colleges for the Future, Sir Andrew
has sought the views of college principals and finance directors
alongside those of representative college groups, such as the
Association of Colleges and 157 group, and promised his final
report by April.
3. The Treasury announced that capital spending would be brought
forward in their Pre-Budget Report published on 24 November 2008.
For further details, see: http://www.hm-treasury.gov.uk/prebud_pbr08_pressindex.htm
4. The NAO's report, Renewing the physical infrastructure of
English further education colleges, published on 11 July 2008,
found that the further education capital programme was enabling
colleges in England to make good progress in renewing and
rationalising their estate, replacing poor quality buildings with
high quality, more suitable facilities. The report found that when
colleges were incorporated, "much of the physical
infrastructure was in poor condition, many buildings required
urgent health and safety-related repairs, were unattractive to
potential learners, unsuitable for modern learning, inaccessible
to people with disabilities and inefficient to run." See http://www.nao.org.uk/pdf.aspx?page=2855
for a pdf of the report and press notice.
5. Since then, the Government has invested huge sums of money
into the renewal and modernisation of the further education
sector. Between April 2001 and March 2008, the Learning and Skills
Council approved colleges' projects at the final detailed
application stage with a total cost of £4.2 billion and grant
support totalling £1.7 billion.
6. For the full list of capital projects with approval in
principle from the LSE, go to page 42 of Sir Andrew Foster's report.