College rebuilding schemes in Southport, Skelmersdale and Ormskirk, and Mid-Cheshire are scrapped

A total of 79 schemes were given “approval in principle” by the Learning and Skills Council (LSC), even though funds were running out – a blunder condemned as "avoidable" in an investigation earlier this year.

The Government then found a further £300m to rescue some of the projects, while a new priority list was drawn up in discussions between the LSC and the colleges.

The conclusions were slipped out on Friday – when most MPs are absent from Westminster – in what appeared a clear attempt by the Department for Business, Innovation and Skills (BIS) to bury bad news.

Announcing the 13 thrown a lifeline, skills minister Kevin Brennan said: "Discussions between these colleges and the Learning and Skills Council will take place as a matter of urgency. All 13 colleges will receive funding only if the overall cost is reduced. The reductions required are significant, but manageable."

Mr Brennan admitted that colleges not on the list had "incurred development costs", but pledged a contingency fund to "mitigate the impact of potential aborted costs on the financial health of colleges".

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