Further education colleges in England face losing financial independence

Government likely to treat FE sector as big schools', removing autonomy over borrowing and investment

Further education (FE) colleges are likely to be treated as big schools" by the government and lose critical financial independence, after a ruling reclassified colleges in England as part of central government.

Sector leaders said the change had major implications for the way colleges are run, removing their autonomy over borrowing and investment decisions and hampering their ability to grow, while allowing few of the benefits in funding, taxes or pension guarantees enjoyed by state schools.