AoC Estates Network Annual Property Conference 2009 An brief update on LSC support for College Estates Philip Head Director – Infrastructure and property Services Learning and Skills Council

What a year!  11 July 2008 – NAO Report “Renewing the physical infrastructure of English further education colleges” - published  July – September 2008 – unprecedented increase in demand for capital funds  October 2008 – determination of some applications deferred  December 2008 – consideration of applications suspended  March 2009 – 8 AiDs held over from December approved (Solihull College, 2 x Bolton, Liverpool, Northampton, Stoke-on-Trent VI Form, West Kent, Couldson)  Foster Report published  Letter from CE on way forward  Begin consultation on capital criteria and prioritisation – AoC Reference Panel

What a year (continued)  April 2009 – 2009 Budget £300m new funds, circa £500m available for say £750m new projects  May 2009 – Readiness questionnaire and verification process  May 2009 – project assessment and moderation process begins  3 June 2009 – LSC National Council meets to select projects to go forward  June/July 2009 – Further discussion and project work up  22 July final project approvals for September starts

The next few weeks  15 May 2009 LSH confirm those projects able to pass through the readiness gateway (ie substantive start on site by early September)  w/c18 May 2009 PwC and LSC complete project assessment process  29 May recommendations considered by National Capital Committee (enhanced with regional representation)  3 June – LSC National Council agrees project selections and forward policy

What if my project is selected?  Further discussions with LSC on project scope and scale and VFM  Project details re-confirmed and LSC completes assessment and internal procedures  22 July (onwards) LSC gives final approval  Likely 4 year project payment profile (may be front loaded)

What if my project is not selected in this round?  Next substantive round of project approvals unlikely before next CSR outcome known (summer 2010)  LSC to work with colleges on establishing new property strategies recognising funding realities, from summer/autumn onwards  Considering approach to costs already incurred and establishing new support fund to assist remodelling  More emphasis on more effective use of existing floor space  More emphasis on estate management based solutions

Other Issues  How much of available funds should be allocated in this round?  VFM and project need v readiness  Sunk costs v new fund  New Floor space utilisation methodology – Stellae commissioned  Using relevant experience within the sector  New business model for LSC capital  Innovative funding and development techniques

AoC Estates Network Annual Property Conference 2009 An update on LSC support for College Estates Philip Head Director – Infrastructure and Property Services Learning and Skills Council