I am pleased to announce £307 million of capital funding will be allocated to FE colleges and designated institutions across England in 2026-27 to help them maintain, improve, and ensure the suitability of their estate. This is the second year of the FE College Condition Allocation, providing colleges with funding certainty to strategically plan and manage their estates.

FE colleges will have the discretion to prioritise how best to use this funding over a three year period, supported by spend guidance the Department has published on GOV.UK: https://www.gov.uk/government/publications/further-education-college-condition-allocation-2026-to-2027.

This funding forms part of the £1.7 billion investment announced in the UK’s Modern Industrial Strategy to improve the condition of FE college buildings. It is also part of the government’s Education Estates Strategy, published in February 2026, which set out plans for an education estate that supports opportunity for all, backed by a 10-year plan to deliver a decade of renewal to transform schools and colleges. High quality and inspiring college buildings are essential for expanding opportunity, breaking down barriers, and ensuring clear pathways from education into skilled employment.

By investing in FE colleges, we are investing in the country’s future workforce and long-term growth.

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