FOUR college rebuilding schemes were effectively scrapped yesterday, after a widely-condemned funding fiasco at a Government quango.

The plans to revamp further education colleges at Stockton (£23m), South Tyneside (£89.2m), Darlington (£6m) and Gateshead (£10m) were shelved until at least 2011.

By that date, Britain will be in the grip of an unprecedented squeeze on capital spending – raising serious questions about whether they will ever go ahead.

There was better news for a fifth project in the region – at Hartlepool (£60m) – which was among 13 schemes proceeding to the next stage of development. However, even those 13 will not be funded unless college managers can slash costs and find other sources of funding, probably from the private sector.

Together the 13 projects currently cost about £515m. There is only £300m available through to 2011, although some spending could be delayed until after that date, when further funds are possible.

Hartlepool College has plans for conferencing facilities, a fitness suite, a bistro, hair and beauty salons and parking on its current site, with work originally due to start in April.

South Tyneside College planned to replace its existing buildings with a business support centre, e-learning rooms, hair and beauty salons, a theatre and performance studios, recording and photography studios and a sports centre.

The five schemes were among 79 given approval in principle by the Learning and Skills Council (LSC) even though funds were running out – a blunder condemned as avoidable in an investigation earlier this year.

The Government then found a further £300m to rescue some of the projects, while a new priority list was drawn up in discussions between the LSC and the colleges. The conclusions were out yesterday, when most MPs are absent from Westminster, in what appeared a clear attempt by the Department for Business, Innovation and Skills (BIS) to “bury bad news”.

Announcing the 13, Skills Minister Kevin Brennan said: “Discussions between these colleges and the LSC will take place as a matter of urgency.

All 13 colleges will get funding only if the overall cost is reduced.

The reductions are significant, but manageable.”

Mr Brennan admitted that colleges not on the list had “incurred development costs”, but pledged a contingency fund to “mitigate the impact of potential aborted costs on the financial health of colleges”.

Back in March, the funding shambles triggered the resignation of LSC chief executive Mark Haysom, after approvals were allowed to run far ahead of the cash available.