David Willetts

Responding to the three month delay to the Government’s capital spending on further education (FE) colleges, Shadow Innovation, Universities and Skills Secretary, David Willetts said:

“This is the reality of Gordon Brown’s so-called ‘fiscal stimulus’. Far from capital projects being brought forward they are actually being delayed. Not only are students of FE colleges missing out on the rebuilding they have been promised, but more building firms could go to the wall as they are hit by the Government’s three month delay to capital spending.

“John Denham must urgently come to Parliament to explain what on earth is going so badly wrong in his department. MPs from all parties have been contacted by concerned FE colleges. It is not enough for the Government to spin behind the scenes about hiring troubleshooters without being held to account in public.”

Notes to Editors

David Willetts has today written to Innovation, Universities and Skills Secretary John Denham demanding he comes to the House of Commons to explain the implications of the three month capital funding freeze. The text of the letter is below:

“I am writing to request an urgent statement about the ‘Building Colleges for the Future’ programme.

The Prime Minister and the Chancellor are committed to bringing forward capital spending projects, but the Learning and Skills Council (LSC) have just halted a number of important building projects mid-stream due to a lack of funds.

The FE sector, employers and everyone with an interest in raising skills believe these cuts will have a devastating impact on our ability to cope with the recession. As the economy rebalances, reskilling and upskilling will be more important than ever. Yet there has been no official DIUS statement on the fiasco.

The Learning and Skills Council have denied there is a serious problem, but I have been contacted by colleges all over the country who disagree. They are very worried about what is happening and also believe resources will be wasted by pausing and stopping existing projects.

It is clear that we now need urgent answers to the following questions:

· Which colleges have had their building programmes frozen, and at what stage is each of the projects affected?

· How much is the LSC’s capital budget now expected to be in 2008/09, 2009/10 and over the whole current Comprehensive Spending Review period?

· What estimate has been made of the direct and indirect costs that will accrue as a result of the stoppages?

· What processes are there to enable colleges to inform the LSC that a stoppage could lead to significantly higher long-term costs?

· Will all building projects that have been stopped receive permission to restart after the LSC’s next Board meeting?

It is essential that we have an urgent and full statement on the current problems facing FE colleges as a result of the LSC’s decisions. I hope you will take the opportunity to explain in detail what is happening to the House.”

Gordon Brown’s ‘fiscal stimulus’

1. The Government have repeatedly promised to bring capital spending commitments forward.

Gordon Brown: “an economic slowdown must not be an excuse to slow down the pace of investment and reform to strengthen our country for the future. … we have also taken action involving some tough decisions that will also benefit every region and nation of the UK to bring forward our capital spending programmes” (10 Downing Street Press Notice, 5 January 2009)

In the Autumn Statement, Alistair Darling said: “I now turn to a wide range of measures which I am taking to support the economy and the people of this country. They will help businesses, support home-ownership and boost people’s incomes now. Bringing forward capital spending, on major projects, supports jobs and businesses. It is right that, at this time, we re-prioritise investment, from within the existing three-year limits, so that more money is being spent now, when the economy is weaker. I can announce today that £3bn of capital spending will be brought forward from 2010/11 to this year and next.” (Autumn Statement, 24 November 2008)

2. Ministers have also spoken of the links between FE capital spending, attainment, skills and regeneration:

“State-of-the-art buildings make a huge difference to educational attainment. Our goal is to make England’s further education (FE) estate a world leader - a system in which learning is delivered in inspirational, innovative and sustainable environments equipped with industry-standard facilities. The Government has already demonstrated its commitment to this goal through unprecedented capital investment, and a record further £2.3 billion will be invested over the next three years. This will benefit generations of learners to come, meet the skills needs of employers and act as a catalyst for community regeneration.” (John Denham, Forward to Building Colleges for the Future, March 2008, p.1)

ENDS