If there is one thing that stands out for me in this Budget, it’s hearing FE being singled out, distinct from the rest of education, as the preferred sector for investment. As with all these announcements, the devil will undoubtedly reside in the detail, but the general direction of travel towards colleges that have suffered so much financially over the past decade has to be applauded.

The confirmation that £1.5 billion will be available from government over the next five years to invest in college estates was very welcome and very necessary although we will need to see what kinds of projects meet the bid criteria. When this was originally mooted during the recent general election campaign, the prime minister said any funding received would need to be bolstered on a project-by-project basis by the colleges themselves to the tune of 21 per cent of the total. A Conservative statement said: “FE colleges will have to work up robust plans to make sure the money is spent wisely.” 

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That’s perfectly sensible if a college needs to buy some new equipment or carry out minor structural changes to a building. However, the bigger Budget items are often the ones that are the most pressing and the larger they are, the less affordable they will become if such a contribution is required. For example, Milton Keynes College is split across three sites. If the fund allows a contribution towards our long-term ambition to relocate to one site, rather than refurbishing existing buildings, it would be transformational as that is undoubtedly our biggest infrastructure need - but it would be a costly enterprise. Wednesday’s 0.5 per cent cut in interest rates from the Bank of England, cheapening borrowing, will undoubtedly help, but it would be a shame if really ambitious and impactful development across the sector remained unaffordable in spite of this announcement.

A very low base to start from 

The £2.5 billion to be invested in a National Skills Fund is intriguing. The Conservative manifesto said: “It is our ambition to establish a Right to Retrain for all adults”, and this was to be the first step towards it. With the world of work changing so quickly, it’s hard to overstress the need for a massive push on adult education so again, this is a welcome announcement. The fact that research from the Learning and Work Institute released last summer shows participation in adult education at a record low demonstrates how much ground there is to make up. The government has said there will be widespread consultation on how the money is spent and it is vital that the FE sector comes together to provide a clear message on what the priorities should be.

We should all give a little cheer for the news that the “reading tax” - VAT on digital publications - is to be abolished in time for Christmas. It’s important to clear away any regulation that inhibits people’s urge to read, whatever age they may be.

Finally, while wanting to be positive about the Budget’s funding improvements, it’s important to remember that it comes from a very low base. The government has taken a couple of steps in the right direction and that’s heartening. However, if the further education sector is to provide that great leap forward in training and skills of which the economy is in such desperate need, this has to be a starting point and not a destination.

Dr Julie Mills is group principal and CEO of Milton Keynes College