Alex Cunningham – 2016 Parliamentary Question to the Department for Business, Innovation and Skills

The below Parliamentary question was asked by Alex Cunningham on 2016-01-26.

To ask the Secretary of State for Business, Innovation and Skills, if he will make an assessment of the financial penalties potentially faced by further education institutions resulting from triggering break clauses in the loan agreements they hold with banks resulting from his Department’s area reviews.

Nick Boles

The Area Reviews provide an opportunity for post-16 institutions to explore issues relevant to the provision in their area and consider recommendations for change. The cost of these changes will be considered in the steering group discussions. Additionally, officials are meeting regularly with the main lenders to the post-16 sector. The nature, likelihood and cost implications of break clauses in loan agreements are being explored in these discussions.