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Autumn statement and the impact on FE

7 December 2012

The Chancellors autumn statement will have two key impacts on FE providers; increased focus on skills and increased capital expenditure, building on Lord Heseltine’s proposals on skills and funding from his report, ‘No stone unturned’.

Local Enterprise Partnerships (LEPs) will receive significant funding to create capacity and develop their strategic plans for the benefit of the local community. LEPs and FE colleges will be encouraged to have representation on each others boards to ensure priorities and plans for growth remain focused. Increased capital investment will be made available for FE colleges to target investment at those institutions which are in need.

These changes are key to help deliver the goal of FE colleges becoming a hub of the local economy and a driver in exerting influence on skills and labour market. When there are still a large number of NEETs this is shaping up to be a step in the right direction which cannot come soon enough given previous cuts and underfunding in the sector.

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