Funding trouble means £4.6bn college scheme moves into BSF

The Government's troubled £4.6bn college building programme, which is facing delays after its funding was hit by falling property prices, looks set to be transferred into the £45bn Building Schools for the Future programme.

Government sources told CJ that the funding crisis facing the Learning and Skills Council's college building programme had "moved the possibility (of a transfer) significantly up the agenda".

Contract Journal first revealed that the programme was beset by delays in April 2008.

The source said that under the government's efficiency agenda, there was a growing momentum for capital programmes to be combined. Officials are also considering including the Primary Capital Programme in the BSF programme.

Department of Skills secretary John Denham has halted the college building programme for three months while Sir Andrew Foster investigates the funding crisis. The programme, overseen by the Learning and Skills Council, aimed to rebuild or refurbish over 200 further education and sixth form colleges by 2011.