Financial mess forces Boston College into intervention

A Lincolnshire college has been placed into government intervention after suffering serious cashflow issues and breaching an unexplained legal requirement.

Boston College was issued a financial notice to improve (NTI) by the Department for Education today. The FE Commissioner’s team has now been called in to assess the college’s leadership, governance and finances.

The DfE listed two grounds for intervention. These were financial health concerns related to serious cashflow pressures and for “financial management and other controls relating to failing to adhere to a legal or regulatory requirement”.

The college said it had already begun to address the “historic” financial challenges with the DfE.

Principal and CEO Lynette Leith, who joined the college in November, “raised the seriousness of the college’s financial position with the DfE”, the notice to improve said.

The college told FE Week it was committed to transparency and accountability, but refused to provide details about the nature of the regulatory breach or cashflow pressures.

It must now comply with a set of conditions before its intervention status is lifted. These include a commissioner-led “capability and capacity assessment” and producing a detailed improvement plan, which will be monitored by the commissioner’s team.

Boston College’s finances slipped from a ‘good’ to ‘requires improvement’ financial health rating last year, according to its 2025 accounts.

It recorded an operating surplus of £519,000 compared to a £990,000 surplus in 2023-24.

Additionally, the college’s EBITDA fell to 2.6 per cent, under the 6 per cent sector target. The year before it recorded a 6.1 per cent EBITDA as a percentage of income.

The accounts stated that cashflow forecasts indicated “temporary pressure on liquidity”, with cash reserves declining to 11 days.

However, projections had predicted “recovery from February 2026 onwards, rising above 20 cash days and reaching 28 cash days by year-end”.

These “short-term cash constraints” were attributable to capital expenditure requirements for the college’s Mayflower construction project, which was due to complete last November.

Leith said: “This is an important time for Boston College. Having already begun to address the college’s historic financial challenges, we welcome the notice as an opportunity to continue improving with pace, transparency and accountability.”

Leith replaced Claire Foster who had worked in further education for 30 years, serving her last five years as Boston College principal.

David Earnshaw, Boston College chair, said: “Lynette, who joined the college in November, is determined to utilise the support of the DfE through the mutually agreed improvement plan.

“I have every confidence that the dedicated staff team will make sure that Boston College continues to deliver high-quality education, while achieving a financially robust future through rigorous management and governance.”