Select committee: Public Accounts Committee
Conclusion 29
Thirty-Eighth Report - Managing colleges’ financial sustainability
Published 27 Jan 2021
Addressed to HM Treasury
Public Accounts Committee Managing colleges’ financial sustainability All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
The Department has not had a clear long-term strategy covering the college sector’s role, structure and funding in an integrated way.56 The Department said that there had been individual elements of long-term strategy, such as giving employers more of a voice about skills and reviewing the number of qualifications on offer. It also highlighted that the impact of COVID-19, together with concerns about productivity, meant there was now a huge amount of focus on setting a strategy for further education and skills development.57 The ESFA told us that it hoped the White Paper resulting from this work would be published before the end of March 2021. It said that the White Paper would articulate the role of FE in the education landscape, the importance it must have, and the things it needed to deliver for the future success of the country.58 48 Qq 94–95, 100–103 49 Qq 96–97 50 C&AG’s Report, para 3.14 51 Association of Colleges, para 4 (MCF00001) 52 Qq 97, 104, 111 53 C&AG’s Report, Figure 8 54 Q 114 55 Qq 83, 90, 106, 108–109, 113; C&AG’s Report, para 3.11 56 C&AG’s Report, para 3.10 57 Qq 64, 80 58 Qq 65–66, 89 Managing colleges’ financial sustainability 15
From: Public Accounts Committee, Thirty-Eighth Report - Managing colleges’ financial sustainability (HC 692), 27 January 2021
Government response
The government responded to the whole report on 26 March 2021.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government states that it "agrees with the Committee's recommendation" on each of the seven recommendations in the response, with target implementation dates given for several.
- On VAT, it agrees with the recommendation and says the department will "explore the potential routes and efficacy" of it with HMRC, and will engage HMRC/HM Treasury "to gauge ministers' appetite" for changing or implementing legislation (target date: August 2021).
- On funding based on student numbers, the department says it is "currently developing a consultation" on how a change to the college funding formula could help, and is "considering the advantages, disadvantages and possibilities" of a system based on real time activity.
- On intervention, it will consult sector stakeholders to "review and publish an update" to its college oversight support and intervention policy in May 2021, and the Committee will be provided with a copy.
- On T Level work placements, the department will write to the Committee in July 2021 setting out what assurances it has that there will be enough industry placements, and the impact of COVID-19 on their availability.