Ministers have refused to release details of concerns surrounding a £95 million North East college development, as a Government probe into its management remains shrouded in secrecy.
Tyne Coast College was served with a financial notice to improve by the Department for Education (DfE) earlier this year, in relation to the new South Tyneside College campus under construction in the town centre. The intervention came due to apparent “weaknesses in the oversight and governance” of the campus relocation, which has been given huge sums of public funding from the Government and the North East mayor, and “associated financial risks to the college”.
However, the notice did not detail the specific problems that had been uncovered when it was released in May. The Local Democracy Reporting Service (LDRS) subsequently submitted a freedom of information (FOI) request to the DfE, asking for a copy of any assessment or inspection report which led to the notice being served.
DfE refuses to publish report
In response, the department confirmed that it does hold such information – but has refused to publish it. Emma Lewell, South Shields’ Labour MP, has now reiterated her worries over the lack of clarity surrounding a scheme hailed as critical to the regeneration of South Shields’ struggling high street.
Ms Lewell told the LDRS that she and her constituents “deserve transparency” and urged education officials to come clean. The new campus has been backed by a share of £20 million awarded through the former Conservative government’s Levelling Up Fund (LUF) to South Tyneside Council, £21.9 million given to Tyne Coast College by the DfE, and £18.2m from mayor Kim McGuinness that was handed over in 2025 to cover a “significant shortfall” in cash.
DfE claims disclosure would ‘inhibit candid advice’
In a letter explaining its decision not to disclose the report on South Tyneside College, the DfE admitted that releasing further details about its concerns “could improve public understanding of the steps taken, or proposed, by a college to manage financial risk and provide assurance that risks are being identified and addressed appropriately”. However, it argued that doing so could make education providers less willing to openly share information with the Further Education Commissioner (FEC) if they feared it would later enter the public domain.
The DfE said: “Whilst there is interest in transparency, particularly where this relates to public funding, and the governance of providers in the further education sector, disclosure would inhibit candid advice and undermine the integrity of the Department's governance and case-management arrangements. The information forms part of the Department's internal governance processes and includes assessments of a college's financial position, leadership and governance, together with detailed legal advice. Disclosure would inhibit candid advice and undermine the integrity of the Department's governance and case-management arrangements. The effectiveness of FE Commissioner support depends on colleges engaging openly about their challenges, risks and improvement plans. If colleges believed that such information could routinely enter the public domain, engagement would be more guarded and some providers may be less willing to participate fully in the support process, reducing the Department's ability to identify risks and secure timely improvements.”
‘Questions to be answered’
Ms McGuinness visited the new campus in June, alongside council representatives and local businesses, and praised it as something that would be “incredible for learners” and deliver a “thriving town centre”. But Ms Lewell, who had previously endorsed the new campus at the time of the bid to secure LUF money, said that there are questions which need answering – especially given new council leader Paul Mackings’ connections to the development.
The MP told the LDRS: “This is the biggest development in my town. My constituents and I deserve transparency. People are right to ask questions about the new leader of the council's involvement in this. He is now in charge of the borough, yet has had a part to play in a scheme that has been found wanting when it comes to financial management and good governance. Surely, there are questions to be answered here.”
Coun Mackings, who became leader of South Tyneside Council when Reform UK won control of the borough from Labour in May, was involved in the campus scheme through his consultancy firm, Paul Mackings Consulting Ltd. The LDRS understands that Coun Mackings had previously acted as an adviser to the project’s board, prior to becoming council leader.
Tyne Coast College had previously confirmed that the Reform councillor’s company was brought in to provide planning advice in relation to the sale of the existing campus at Westoe and that one of its other directors, Richard Spencer, had since been seconded to the college. The minutes of a council cabinet meeting on May 27 this year confirm that Coun Mackings left when a confidential item relating to Tyne Coast College was discussed, as he declared a financial interest in the matter.
‘Significant for the future of South Shields’
A spokesperson for South Tyneside Council said: “The Council remains committed to ensuring decisions are taken transparently and in accordance with its own governance arrangements. The relocation of South Tyneside College is a significant project for the future of South Shields and the wider borough, and the Council continues to work closely with Tyne Coast College and other partners because of the project's importance to skills, education, regeneration and economic growth. The project is being led by Tyne Coast College, which is responsible for its own contracts, appointments and operational decisions.”
The college has previously said that the DfE notice will not put the new campus at risk, ahead of its scheduled opening in September 2027, and that it would work with the DfE to “further strengthen oversight and delivery arrangements”. It was ordered through the original notice to consult the FEC on any decision or changes involving the new campus plan, while a DfE representative will observe relevant meetings “until it is satisfied that there is sufficient oversight and challenge of the capital project development”. Bosses were also told to “review the full costs, assumptions and impact of alternative financial scenarios” for the campus development alongside the FEC and “highlight further financial support or mitigations that may be possible or required”.
The college and the North East mayor's office were both contacted for a response.
