LSC was 'reckless' with college building programme

The Committee of Public Accounts report,  published today, found serious failings in the LSC's management of the colleges rebuilding programme.

The report also slammed the government for failing to pick up on problems at the LSC, despite the fact the programme had been plagued by problems from April last year.

Edward Leigh MP, chair of the Committee of Public Accounts, said the LSC behaved irresponsibly by approving too many projects and allowing financial commitments to outstrip what it could afford by nearly £2.7bn.

He said: "The future of the programme is now beset with considerable uncertainty which must be dispelled as soon as possible. Some colleges are heavily committed to projects on which they have incurred costs. Some straight talking is needed from the LSC so that colleges in this position are aware of the difficult decisions they will have to take."

Leigh warned that there is a risk that some colleges are taking on more debt than they can manage, which could make them more vulnerable to further financial losses.

The report also claimed the 16 to 19 transfer could jeopardise the programme further. The college rebuilding programme will require "very careful management" when the LSC is dissolved, the report said.