Accounting officer assessment: Further Education Capital Transformation Programme
Updated 30 April 2024
Applies to England
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Accounting officers have a responsibility to scrutinise significant policy proposals, projects or programmes and ensure the actions of the public organisation they lead meet the 4 accounting officer standards (regularity, propriety, value for money and feasibility) as set out in managing public money.
From April 2017, the government has committed to making a summary of the key points from these assessments available to Parliament when an accounting officer has assessed a project or programme within the government major projects portfolio (GMPP).
Background
£1.5bn of capital funding was secured in the 2020 spring budget to deliver the 2019 manifesto commitment to upgrade and transform the further education college (FEC) estate. Investing in the further education (FE) estate is crucial in enabling the sector to deliver the government’s ambitious technical education and FE reform agenda, provide parity of esteem between technical and academic routes and institutions, and support the levelling-up of learner and labour market needs across the country.
The £1.5bn capital investment is delivered through the FE Capital Transformation Programme. The funding that was secured in the 2020 budget will help maintain estates, mitigating the risk of providers not being able to deliver the high-quality further education that will underpin the reforms to the sector.
The FE Capital Transformation Programme is delivered by the Department for Education (DfE) in 3 separate phases, as set out below. This is a change in delivery approach from the previous arrangements for the Skills Capital Budget, which has been devolved to Local Enterprise Partnerships through the Local Growth Fund since 2016/17.
The FE Capital Transformation Programme will deliver the £1.5bn funding secured through these 3 phases:
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Phase 1: £200m of capital funding delivered by allocation to all FE colleges and designated institutions in 2020 to 2021 to fund immediate remedial projects.
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Phase 2: investment in 16 FE colleges with some of the worst-condition sites in the country, with the department working in partnership with the colleges to deliver their capital projects.
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Phase 3: funding will be delivered through the FE Capital Transformation Fund in two rounds. The first round is a competitive bidding process and the second is to be confirmed in due course.
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The programme will also fund two condition improvement projects that will support colleges involved with the Education and Skills Funding Agency (ESFA) specialist restructuring team.
Assessment against accounting officer standards
Regularity
The Secretary of State has wide powers to provide FE capital funding to FE colleges and designated institutions under section 100 of the Apprenticeships, Skills, Children and Learning Act 2009 and/or section 14 of the Education Act 2002.
Expenditure on education-related purposes is covered within the departmental ambit.
As such, the programme does not require any new legislation and no issues are anticipated in maintaining compliance with established United Kingdom law.
Propriety
Ministers have agreed the broad outlines of the FE Capital Transformation Programme in terms of its objectives, eligibility and assessment criteria. Ministers have approved the phased approach for delivery of funding, as set out above.
The full business case went through the department’s clearance process and was approved by its investment committee and subsequently by HM Treasury. The programme went through an Infrastructure and Projects Authority (IPA) Gateway 3 review in 2021 and will be reviewed again in early 2023.
Value for money
£1.5bn spend, plus match-funding of up to 50% from FE colleges and investment via the T Levels capital fund to improve building condition, was originally estimated as the amount of investment required to support the key objective of improving parts of the FE college estate from poor condition to ‘fit for purpose’ condition. It was thus judged to be the option representing the best value for money.
A centrally managed delivery approach for Phases 2 and 3 will allow greater value for money, to be achieved through targeting investment where this is most needed to upgrade college estates across the country.
There is strong evidence that FE improves people’s employment and earnings prospects and productivity[footnote 1]. Suitable, fit-for-purpose institutions with appropriate, industry-relevant facilities will support increased quality learning and the ability to meet the skills needs of the labour market. FE capital funding will support parity of esteem for technical routes, restoring colleges as modern, attractive organisations for learners, and increase the availability and quality of technical education. FE capital investment will also support the financial stability of the sector through better-utilised estates that are more efficient, sustainable and cost-effective to run.
Feasibility
The programme is assessed as deliverable. Sufficient budget has been secured, the programme team is resourced, all internal review and approval processes have been adhered to, and strong project and portfolio management methodologies and processes have been established to monitor and manage the project. All the proposed delivery models have previously been employed by the DfE/ESFA in the provision of capital spend to college or schools.
The pace of delivery and revision to the original programme profile poses a feasibility risk that is manageable with close monitoring and governance.
Conclusion
As accounting officer for the Department for Education, I have considered this assessment against the four accounting officer standards. I am satisfied that the Further Education Capital Transformation Programme relies on clear legal powers, meets the standards of managing public money, accords with the generally understood principles of public life, represents good value for money for the Exchequer as a whole, and is feasible to deliver.
If any of these factors change materially during the lifetime of this project, I undertake to prepare a revised summary, setting out my assessment of them.
This summary will be published on the government’s website (GOV.UK). Copies will be deposited in the Library of the House of Commons, and sent to the Comptroller and Auditor General and Treasury Officer of Accounts.
Susan Acland-Hood
Permanent Secretary