What should the government do when a college goes bust?
This isn’t a hypothetical scenario, as it happened to K College in 2013.
After tens of millions in bail-outs, a desperate Skills Funding Agency held a tendering process and open days to flog-off the five campus assets and contracts.
No deal was done, but subsequently two neighbouring colleges have successfully taken over the sites and provision.
What this showed was that with government support, the college sector was capable of rescuing and restructuring itself.
And there should be more college takeovers like this where needed – forced if necessary.
Every community deserves a not-for-profit college and the tax paying public should expect it to be financially efficient.
Both should be possible.
So when colleges go bust the first in the queue with a rescue plan shouldn’t be those with profit motives.
It should be successful colleges, with short-term financial support where needed.
(Click here to see our news story on a leaked report indicating that insolvent colleges could be sold-off to private investors)