Intervention lifted at pandemic-hit City Lit

England’s largest adult education institution has been released from government intervention over its finances after nearly three years. 
 
London’s City Literary Institute’s (CityLit) finances took a tumble following the pandemic because of its atypically high levels of self-funded students. A 27 per cent drop in income by 2020/21 triggered an ‘inadequate’ financial health assessment and financial notice to improve, placing the college in intervention in March 2022. 
 
Sustained improvements in the college’s finances since then have now resulted in the notice to improve being lifted. 
 
The FE Commissioner last visited the college in November and was satisfied it was moving in the right direction, though it was not “fully out of the woods yet”, according to CityLit principal and chief executive Mark Malcomson.
 
Malcomson said the college had recovered faster than planned, and praised his staff for “making sure we deliver an outstanding experience to our students at the same time as keeping costs under control”.
 
City Lit’s recovery plan was found to be based on “sound analysis” when it was first reviewed by the FE Commissioner in 2022. The college had no long-term debt, but successive pandemic lockdowns saw its fee income crash. Staffing was cut by between 10 and 15 per cent at the time. 
 
Despite the financial challenges, the college was judged ‘outstanding’, up from ‘good’, in an Ofsted inspection in July 2023.
 
Malcomson added: “It’s been a slog, and we’re still on a journey. But we’re delighted. We’re really pleased with the support we’ve had from the FE Commissioner and her team. Shelagh [Legrave] was involved right from the beginning. There was nothing accusatory; we were treated as ‘you’ve had unprecedented circumstances, and we’re here to help get you through’”.
 
This is the first college to come out of intervention in 2025, Legrave’s final year in post as FE Commissioner.