Lack of funds halts North Shropshire College merger

North Shropshire College says it is “extremely disappointed” after government education officials said they would not fund the merger with Nantwich-based Reaseheath College.

The college, which has campuses in Oswestry, Walford, Shipley, Bridgnorth, and on the Herefordshire border, announced last year it had formed a federation with Nantwich-based Reaseheath College.

In a statement last year the college said that a merger would increase “its ability to operate effectively and efficiently within the current economic and political environments”.

It is not clear what the collapse of the merger means for the future of the organisation.

A joint statement from the two colleges said: “North Shropshire College and Reaseheath College have successfully worked closely together in federation for over a year, sharing best practice and quality improvement projects, and have achieved significant benefits for learners in north Shropshire, but unfortunately long-term funding is not available to support a potential merger.”

“The college management teams and governors of both institutions were keen to build on these initial benefits and have been working with the Education and Skills Funding Agency (ESFA) and the Treasury Transaction Unit (TU), for the past 10 months, to secure sufficient funds.

“Despite best efforts and long discussions, the ESFA and the TU have been unable to fund a merger sufficiently to enable the college management teams and governors to recommend with confidence that the financial support offered will ensure a successful merger.”

Work had been taking place for the past 18 months between both management teams. Both colleges said they were “extremely disappointed”. with this outcome.”

North Shropshire College and its management team will now work with the Education and Skills Funding Agency and the FC Commissioner to find an alternative solution.

A spokesperson for both colleges added: “The conclusion to this process is disappointing to both colleges and the government, but we have explored all possible long-term funding support and unfortunately there is not a viable solution.”

Last year North Shropshire College said the merger would enable them to offer a “wider and better” educational experience to further and higher education students and apprentices.

The principals said the move would have also helped the local economy by building links with industry and local communities.

A federation was agreed after extensive research was undertaken by the governing bodies of both colleges.

Peter McCann, interim principal at North Shropshire College, said work was already taking place to find a solution.

He added: “After so much work together it is of course disappointing that the merger has broken down at the eleventh hour, but North Shropshire College has already begun discussing alternative strategies with our community and government stakeholders and we will ensure that the outcome serves the needs of our students, employers and community as effectively as possible.”

The news comes a year after it was announced jobs would go as the Oswestry campus ditched exams and A-levels to concentrate on vocational courses.