Tyne Coast falls into hole left by £96m campus

A north east college has been placed in financial intervention for “weaknesses” in its oversight of a £96 million campus building project.

In a notice to improve issued today, the Department for Education said it found issues with the oversight and governance of Tyne Coast College’s new 15,000 square metre campus.

The college said the intervention followed an FE Commissioner review of the project in South Shields town centre, which will include a new campus building, a refurbished listed building, workshop facilities and a 125-bed halls of residence.

Contractor Castle Construction began work last year, with the college celebrating the securing of funding for the area’s “major transformation”.

According to the notice, weaknesses in oversight and governance and “associated risks” to the college met the government’s intervention trigger for financial management.

A spokesperson for Tyne Coast College confirmed it did not request or receive an emergency government loan or grant in relation to the project.

However, the North East Combined Authority (NECA) said building work was held back until summer last year due to a “significant shortfall” of £18 million in funding.

NECA agreed to cover the shortfall in May 2025, noting that the government had refused to give the Tyne Coast College and its regeneration partner South Tyneside Council any extra money, and that the college was “unable to borrow any further”.

At that point, the college had secured a £22 million loan and £11 million grant from the DfE, £8 million from its own funds, £23 million from the sale of its existing campus, £9.5 million in levelling-up funding, and £2.7 million in funding for the restoration of listed buildings.

Rising construction costs

The NECA decision report approving its £18 million grant noted that surveying firm AtkinsRealis’ reported that forecasting “had not been keeping pace” with rising construction costs.

The college’s audit committee minutes from 2024 also suggest it was in an “ongoing dispute” with the company.

A spokesperson for Tyne Coast College said it acknowledged the financial notice following an FE Commissioner review.

They added: “The review recognised the college’s ambition to invest in a new campus and the complexity of a multi-funded project in delivering a new build, a refurbished listed building, a site for workshop facilities and new halls of residence.

“However, the FEC did highlight concerns with the oversight and governance of the project which has meant associated financial risks have evolved which have triggered intervention. The college has been issued with a financial notice to improve and placed in supervised college status, with relation to the capital project.

“We recognise that improvements are required in relation to elements of the capital project and are working closely and constructively with the Department for Education and the FE Commissioner to implement a robust and comprehensive action plan.

“This includes strengthening governance arrangements, ensuring clear leadership accountability for the delivery of the project and enhancing financial controls.”

Chris Robinson, UCU’s northern region support official, said: “Staff across Tyne Coast College have continually given their all for the students and the local community, under often very difficult circumstances, including pay freezes and changes to terms and conditions.

“It is not clear what this judgement means for the staff, but it certainly should not be our members who pay the price for senior management and governance failures.

“Our members have continually questioned the plans for new buildings and campuses. One message that this notice to improve sends, is the need for substantive staff involvement in the future of Tyne Coast College.”