City College Southampton: Merger with Itchen College rejected

City College Southampton, which had a deficit of £1.65m last year, was due to merge with Itchen College

A planned merger between a cash-strapped further education college and a sixth form college has been scrapped.

City College Southampton, which had a deficit of £1.65m last year, was due to merge with Itchen College to cut costs.

The merger, affecting 6,000 students, was rejected by the Education Skills Funding Agency (ESFA) citing "uncertainty around financial viability".

The college said it was "extremely frustrated" by the move.

Earlier this year the ESFA, which is financially supporting City College, said it needed to find a "long-term solution" to funding issues.

The further education college, which caters for 16 to 18-year-olds as well as adult learners, admitted it was "financially weak" after its financial report showed it had £5.86m of loans outstanding with Santander.

The merger was the third proposal for the college, which employs 250 staff, that has been rejected by the government.

Chief executive Sarah Stannard said the college was "vital to the future of the economic health of Southampton".

"City College has worked collaboratively with each of the proposals put forward over the last five years, and we are determined to find a solution that will provide a sustainable future for further education in Southampton," she said.

Southampton Itchen MP Royston Smith said he was "very disappointed" at the decision.

"This merger presented a great opportunity to bring together two well-regarded further education providers in our city.

"Technical and vocational courses should be high up on the government agenda."

EFSA spokesman Grant Dyson said: "We will continue to work with City College Southampton to find a solution and to protect the interests of learners and the local community."