Squeeze of 5.8% for FE

Details of almost Pounds 3 billion of funding allocations for 1996/97 released this week show a revenue increase of 3.4 per cent over last year, according to the Further Education Funding Council.

However, a 30 per cent cut to capital spending reduces the overall increase to 1.6 per cent. Forty-four per cent of the 400 institutions who applied got at least 1.6 per cent. A further 20 per cent will get increases up to 1.6 per cent.

Colleges at the top of the scale include Halton College, which will show a rise of almost 18 per cent in funding having rapidly outperformed its targets for several years in a row; East Durham Community College, gaining 13.4 per cent and People's College Nottingham with 12.5 per cent more funds. Some 36 per cent of colleges will struggle with reduced funding, reflecting a failure to reach target student numbers. They are also penalised for maintaining relatively high average levels of funding.

At the bottom of the pile are North Tyneside College, down 10 per cent on last year; Merton Sixth Form College, also down 10 per cent and Cleveland Tertiary College dropping by 7.4 per cent.

Government funding available for distribution to colleges assumes that the FE sector will make efficiency savings of 5.8 per cent next year Q more than expected because student numbers are up and capital funding down Pounds 49.3 million.