Horrific Cuts in Northern Ireland
The BBC reports that further education colleges and universities could face "horrific" funding cuts of almost 20%. Sources say the Department for the Economy told organisations it funds its budget may shrink by between 17% and 19% in 2023-24.
Reclassification Complication in Manchester
Yesterday, LTE Group (including The Manchester College) met with Manchester Council's Economic Scrutiny Committee. LTE advised that it completed Phase One of its estates transformation on time and within budget. This phase included the new £96m City Campus Manchester (pictured) and a £25m renovation and expansion of the Openshaw Campus. There has been positive student feedback at both sites, with recruitment at the City Campus Manchester exceeding expectations. The college has successfully applied to the DFE's Transformation Fund for Phase Two of its strategy. The DFE agreed to supply a grant of £18.5m, with the college providing the rest. This phase will replace the Shena Simon campus with more space at the new City Campus. However, LTE noted the effects of the recent ONS reclassification of colleges as public sector. This reclassification requires new loan finance from the government rather than commercial sources. With the DfE's loan scheme yet to be announced, this arrangement may affect the College's ability to start Phase Two this summer. Speaking to councillors, John Thornhill, LTE Group Chief Executive, said that the reclassification meant English colleges were technically part of central government. The "DFE are effectively in charge of [FE colleges'] budgets". In response, Councillor Moran noted the new position's "inherent contradiction" given government commitments to devolution.
The Price of Freedom
Meanwhile, Yorkshire Live reports that seven new colleges are planned in West Yorkshire - "but education bosses are angry". The plans are actually for Free Schools (funded and controlled by the government). However, colleges are concerned that the proposals duplicate parts of their provision. Kirklees College, Leeds City College, Bradford College, Keighley College and Wakefield College have submitted letters of opposition to the DfE's Free School Assessment Team. Principal of Kirklees College, Palvinder Singh, said: "These proposed new free schools are not needed as the necessary provision already exists locally. Should the proposals go ahead, there is a significant risk that existing providers will have to make savings, requiring cuts to the curriculum and staffing, and some will no longer remain viable."
HE Should Borrow Green Money
Sustainability-linked loans allow universities to make savings when they meet climate targets. So why are they so rare, asks Geoffrey McGinley in the Times Higher Ed.
Sustainability-linked loans (SLLs) have become popular in recent years, with lenders offering financing on the condition that borrowers meet predetermined sustainability targets. Failure to meet these targets increases the cost of borrowing; exceeding them results in cheaper financing. While SLLs have become mainstream in many sectors, they have been slow to take off in the higher education sector. This is despite the opportunity to respond to many students' significant concerns about climate change.
Some university finance directors may worry about potential criticism over wasting student and taxpayer money if they fail to meet targets. However, universities that familiarise themselves with SLLs now may reap the rewards.
and finally, Congratulations Loughborough College!
From LinkedIn, Loughborough College's new T-Level Centre opened yesterday!