A small Somerset college in severe financial trouble due to a significant government clawback has found a merger partner.
Strode College is hoping to secure its future by partnering with Bridgwater and Taunton College (BTC) in the summer of 2025.
Strode College was put in FE Commissioner intervention last year after a government investigation into subcontracting found young adults on security and rail traineeships were made to work illegal hours by the college’s delivery partners.
A “significant” but undisclosed clawback totalling millions of pounds is now being demanded by the Education and Skills Funding Agency, which has deteriorated the college’s financial health to ‘inadequate’.
The college, judged as ‘good’ by Ofsted, hasn’t published accounts for the past two years, but it serves around 4,000 learners and had an income of less than £17 million in 2021.
The college, which has launched legal action against the subcontractors involved, cannot repay the traineeship clawback in the short to medium term, the FE Commissioner reported in April, meaning there is a threat to its long-term sustainability.
BTC is also judged as ‘good’ by Ofsted, teaches nearly 25,000 students, has an annual income of £58 million and is around a 30-minute car journey from Strode College.
The proposed merger aims to create a new group structure, allowing both BTC and Strode College to “maintain their individual culture, values, ethos, and identities while benefiting from centralised strategic support”.
‘A prosperous future for education in our region’
A spokesperson said that both boards of governors have unanimously agreed to pursue this merger, which is subject to due diligence and final approval from the education secretary.
The “collaborative framework” put forward will “provide the resources and capacity to improve student experiences, offer enhanced opportunities for staff, employers, and the wider community, and ensure financial sustainability for both institutions”, according to the colleges.
Staff and students have been told it is “business as usual” at both institutions while due diligence takes place, with no immediate changes to day-to-day operations, roles, or responsibilities.
Strode College principal John Revill said: “We look forward to collaborating with our stakeholders throughout this transformative process and working together to shape a prosperous future for education in our region.”
Andy Berry, principal of Bridgwater and Taunton College, added: “By bringing together two high-performing colleges, we can strengthen the educational landscape for the communities we serve. Our collective capabilities will enable us to unlock new opportunities for students, employers, and staff alike.”
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