THE funding fiasco that threatens to derail four college rebuilding schemes in Merseyside and Cheshire claimed its first scalp yesterday, when the head of the Learning and Skills Council (LSC) resigned.

Mark Haysom, the LSC’s chief executive, said he was taking responsibility for the quango’s failures after further education colleges warned they faced losing £170m because flagship projects were put on hold.

Among 79 of the schemes left in limbo are four in the region, at Southport (£39.6m), St Helens (£32m), West Cheshire (£65m) and Mid-Cheshire (£44.3m).

A furious John Denham, the Universities Secretary, had accused the LSC of allowing scheme approvals to run far ahead of the cash available – falsely raising the hopes of students across England.

Mr Haysom quit yesterday, despite insisting the £5bn rebuilding programme had been “able to change the face of further education in towns and cities across England”.

He said: “No matter where those mistakes have been made, and no matter how many people have been involved in the capital programme, as the chief executive of the LSC I am, of course, finally accountable.”

There were questions asked about the departing chief executive’s £104,000 pay-off, which is six months’ salary in lieu of notice. However, he will not receive any bonus.