A WEST Cumbrian college has been issued a 'financial notice to improve' from government following 'extra pressure' on the short term finances of the educational centre.

Lakes College, based at Lillyhall in Workington, has been issued the notice after securing a £1.5million emergency funding loan to 'provide working capital to the college due to serious cashflow pressures being identified', according to a letter from the Department for Education (DfE).

The notice of improvement, first issued on May 23 but now revised, sets out conditions of funding that the college is required to comply with.

These include that the college produces a single improvement plan which should be approved by no later than the end of September; undertakes a regular review of potential cash flow requirements and submitting of monthly management accounts; and attends regular meetings with the DfE.

Lakes College Principal and CEO, Chris Nattress, said: “At Lakes College we are committed to meeting employers’ needs and helping to train the workforce of the future.

"We work successfully with many hundreds of employers and partners – local, regionally and nationally – and have a very impressive, award-winning track record of meeting demand with our programmes of learning and apprenticeships.

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“In addition to the funding pressures faced by the sector over recent years, and the effects of rising inflation on costs, we have recently experienced extra pressure on our short-term finances over the past 12 months, owing to a combination of shortfalls in our adult learning delivery and T-Level recruitment, and significant upfront investment in our STEM Engineering Skills Academy.

“In order to alleviate these short-term pressures, we successfully secured a relatively small loan from the DfE during the 2023/24 academic year. We plan to repay this in full by autumn 2027.

"A condition of the loan is to engage with the FE Commissioner, and have a Financial Notice to Improve (FNTI).  

“Our revised, robust financial plan includes an appropriate business model to ensure we continue to support all of our learners, apprentices and employer partners. Our underlying position and arrangements going forward are solid and sustainable – we have no other borrowings.

"We have not implemented a compulsory redundancy programme; we will continue to deliver necessary savings via increasing our operational efficiency.

“I am confident that the FNTI will have no direct negative impact on the day-to-day running of our Ofsted Good rated college, ensuring we continue to deliver our high standards of teaching and training to all our learners – and employers - as well as supporting continued growth within the college.”