Tyne Coast College, a group of colleges in South and North Tyneside, has been served with a Financial Notice to Improve (NtI) by the Department for Education (DfE) because of “weaknesses in the oversight and governance of the college’s major capital project” in South Shields and associated financial risks.
Tyne Coast College is currently building a £95mn campus and associated facilities which were described by the then South Tyneside Council leader, Tracey Dixon, as “the cornerstone of our regeneration ambitions” when work started on site in June last year. It is due to open in September 2027.
The new campus is being funded jointly by the college, South Tyneside Council, the North East Mayoral Strategic Authority (NEMSA), the DfE, other government sources, the sale of the old campus at Westoe and various other grants.
As well as the campus in King Street/Barrington Street, the project includes a 125-bed student accommodation block overlooking the river, workshops and the refurbishment of a listed building in Barrington Street to provide offices. Tyne Coast College has campuses at South Tyneside College, Westoe; Tyne Metropolitan College at Wallsend, and South Shields Marine School.
At the ground-breaking ceremony for the new campus last June, Tracey Dixon said: “This project has been in the planning for several years and is the cornerstone of our regeneration ambitions. Increasing footfall by diversifying the town centre has always been central to our plans, and the college relocation is going to bring in thousands of additional people who will spend time and money here.
“In a couple of years, we will be welcoming students from across the region and beyond to this new, modern campus where they will gain the skills they need to prosper in leading industries like our growing green economy.”
Tyne Coast College said in a statement to North East Bylines that the NtI did not reflect the qualify of education and support offered to students and South Tyneside Council said the relocated college remained the cornerstone of its long-term plans to revitalise and diversify South Shields town centre
Draconian
Now the college has been told of additional conditions of funding that it is required to comply with in order to continue to be funded by the DfE. They are draconian (see below).
In addition, says a DfE letter to the college’s acting chair of governors, Gary Hindmarch: “…due to the nature of our concerns with South Tyneside College campus capital development, the college is also placed in supervised college status.”
The college has been referred to the Further Education Commissioner (FEC) for an independent assessment of the college, and the capacity and capability of its leadership and governance to bring about the required changes and improvements.
Future funding
The letter warns: “DfE may consider this NtI when determining any eligibility for growth funding and/or it may also affect your ability to be successful in tendering for other funds, and other competitive tendering processes for new provision.” DfE will continue to closely monitor progress made towards meeting these conditions through regular meetings, led by the FEC team, says the letter.
“We will work with you and wider agencies to secure the best outcome for learners. In line with our published policy, we do not want colleges to remain in intervention for longer than is necessary and will assess when Tyne Coast College has made the necessary progress for this NtI to be lifted.
“If Tyne Coast College does not comply with the conditions within the specified time period, DfE will pursue one or more of a range of options outlined in, or incorporated into, the funding agreements. This may include the use of further education statutory intervention powers.”
The DfE has warned the college that it publishes all NtIs on the government website and when the FE Commissioner produces a summary report it too will be published on the site. The college will also be required to publish it on its own site and keep it there until the NtI is lifted.
The college has been told that it must work with the FEC and her team to undertake an independent assessment of the college’s capability and capacity to make the required changes and improvements. This will include supplying all necessary information to the FEC or her team by the agreed deadline/s so the assessment can be made.
Improvement plan
The college governors and leadership team must work with the FEC’s team to develop a single improvement plan (SIP) which must include priorities and actions needed to address issues and risks on the South Tyneside College campus capital development across all four connected sites. The college must share a draft SIP with the FEC’s team who will review and make an assessment of whether the proposed activities will maintain the college’s financial position.
The SIP should then be approved and finalised by the college governing body no later than a week after the FEC advisers’ comments have been received by the college. The college must provide evidence that the SIP has been approved by the governing body.
The governing body should review the frequency and arrangements with which it and/or its committees monitor implementation of the actions in the SIP to ensure effective oversight of progress. The SIP will need to detail specific, measurable, achievable, realistic (SMART) and timely activities and milestones including those related to delivery of South Tyneside College campus capital development.
Governors
The governing body of the college will have to engage with the National Leaders of Governance for Further Education programme in line with timescales agreed with the FEC to make use of expertise available to raise standards in board operations.
The college must produce an updated college financial forecasting return (CFFR), income and expenditure assumptions and sensitivity analysis by 31 July 2026, in line with published, mandated requirements for the further education sector. The CFFR must include detail of the impact of the South Tyneside College campus capital development on the college’s overall financial position.
As a requirement of the college being placed in supervised college status related to the South Tyneside College campus capital development, DfE will have a representative observing governing body meetings, strategy events and other committee meetings as deemed appropriate, including South Tyneside College campus capital development meetings, until it is satisfied that there is sufficient oversight and challenge of the capital project developments. The college must supply, in advance, copies of agendas for board meetings, strategy events, other committee meetings and South Tyneside College campus capital meetings, and DfE must receive all papers, both confidential and non-confidential.
Senior staff
The college must also consult the FEC or regional deputy FEC on decisions that affect the long-term future of the college, including the appointment of any senior staff including the appointment of any staff or contractors involved in delivering the South Tyneside College campus capital development; the appointment of governors including a new chair of governors; significant changes to the South Tyneside College campus capital development design or financial commitments; significant asset disposals and/or developments; any plans for structural change; any decision in relation to the South Tyneside College campus capital development which would have a material impact upon the college.
The college must undertake a review of future chairing of the governing body with the FEC or deputy FEC in line with timescales agreed with the FEC’s team. The college must engage in a DfE-led capital review of the status across each of the four South Tyneside College campus capital development sites in line with timescales agreed with DfE to inform understanding of the issues, risks and subsequently inform improved contingency planning and support needs.
It must review and take steps to strengthen the expertise of the current senior postholder structure by July 2026, ensuring job descriptions clearly define accountability responsibilities for statutory safeguards and decisions that affect these – for example funding, estates, health and safety, safeguarding learners, quality and compliance.
The governing body must commission an external review of the effectiveness of governance by January 2027 including, but not exclusive to, risk and assurance work of the governing body, and the effectiveness of the finance and resources and audit committees; this review should lead to a clearly documented ‘governance improvement roadmap’.
The college must engage with the FEC’s team to review the full costs, assumptions and impact of alternative financial scenarios for each of the four South Tyneside College campus capital development sites in line with timescales agreed with the FEC’s team and highlight further financial support or mitigations that may be possible or required.
College and council statements
A spokesperson for Tyne Coast College said: “Tyne Coast College acknowledges receipt of a Financial Notice to Improve issued by the Further Education Commissioner following a review which was undertaken in March for the college’s new campus development in South Tyneside.
“Importantly, this notice relates specifically to the capital project. It does not reflect the quality of education and support provided to our students, which continues to be a core strength of the college.
“The review recognised the college’s ambition to invest in a new campus and the complexity of a multi-funded project in delivering a new build, a refurbished listed building, a site for workshop facilities and new halls of residence.
“However, the FEC did highlight concerns with the oversight and governance of the project which has meant associated financial risks have evolved which have triggered intervention. The college has been issued with a Financial Notice to Improve and placed in supervised college status, with relation to the capital project.
“We recognise that improvements are required in relation to elements of the capital project and are working closely and constructively with the DfE and the FE Commissioner to implement a robust and comprehensive action plan. This includes strengthening governance arrangements, ensuring clear leadership accountability for the delivery of the project and enhancing financial controls.
“Intervention is time limited and relates solely to the capital project. It does not impact on jobs, and the college remains both operationally and financially strong.
“The development of the new South Tyneside campus remains a key strategic priority for the college, and we remain committed to delivering high-quality, future-focused facilities for our students, staff, and the wider community. The new campusis progressing and remains on track to welcome students in September 2027.”
A spokesperson for South Tyneside Council said: “[The] council is aware that the DfE has issued Tyne Coast College with a Notice to Improve, relating to oversight of the college’s capital project for a new campus.
“The council is a key partner in the development of the new South Tyneside College and South Shields Marine School campus in South Shields town centre, which is a joint regeneration project supported by the DfE.
“Construction of the new campus site is already well underway and work continues as planned.
“The Notice to Improve does not change the council’s role in supporting delivery of this transformative project, nor does it detract from the council’s commitment to seeing the new campus completed.
“We will continue to work closely and constructively with Tyne Coast College, the DfE and other partners to support the successful delivery of this important investment in education and skills for South Tyneside. The relocated college remains the cornerstone of the council’s long‑term plans to revitalise and diversify South Shields town centre, boosting footfall and the local economy.”
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