College loses appeal over £3.7m 'debacle'

The college spent the money on architects and other contractors after receiving positive indications from the Learning and Skills Council (LSC) that it would fund the bulk of the plan.

But the LSC was forced to pull out of the project and 79 other nationwide due to financial difficulties and used its remaining funds to reimburse colleges left facing insolvency.

The institute claimed the LSC's decision to allocate funds in the way it did was "irrational" but yesterday the challenge was dismissed by a High Court judge who criticised the funding "debacle" but decided the bid for reimbursal had been given "due consideration".