Stoke-on-Trent College is planning to axe 200 jobs to save Pounds 8 million on its Pounds 30 million annual budget, writes Chris Johnston.
The college missed student recruitment targets by per cent last year and has to repay Pounds 3.5 million to the Further Education Funding Council. The shortfall affected this year's targets, meaning a Pounds 2.5 million reduction in expected income. The college had already planned savings of Pounds 1.5 million for this year.
Staff were told on Monday that redundancies would be necessary and consultations were launched with unions. Natfhe said the situation was "a financial crisis unprecedented in the history of further education" and called for a full independent inquiry.
Kevin Farrell, chairman of the college corporation, denied that Natfhe warnings about under-enrolments had been ignored and said the review would determine whether matters could have come to light sooner.
Neil Preston, director of the college, and Helen Chandler, an assistant director, continue to be absent on sick leave. The High Court last week dismissed an attempt to prevent the college examining allegations against the pair.
They are allegedly running the Dymock Arms pub in Penley, near Wrexham.
Both are directors of The Pub Doctor Ltd. Ms Chandler has been granted a temporary licence to run the hotel.