Bosses at the Department for Education (DfE) served Tyne Coast College with a financial notice to improve last month, after a review of its ongoing construction of the new South Tyneside College campus in the heart of South Shields – as revealed by North East Bylines on 23 May.
The DfE notice, which has placed the college under supervision, said there were “weaknesses in the oversight and governance of the college’s major capital project at South Tyneside College, and associated financial risks to the college”.
However, the exact nature of the concerns has not been disclosed.
In March 2025, mayor Kim McGuinness awarded the scheme a further £18.2 million of public money to cover what was then described as a “significant shortfall” in funding for the relocation of the college from its current base in Westoe. South Tyneside Council and the DfE itself had also provided funding previously.
The college has insisted that the new-build, which has been hailed as the cornerstone of efforts to breathe fresh life into South Shields town centre, remains on course to open in September 2027 and was not at risk.
A spokesperson for the North East mayoral authority told the Local Democracy Reporting Service: “The new college building is fast taking shape in South Shields and will transform the town centre for local businesses and local people when it opens to students and staff.
“This is a major investment for us as part of the Mayor’s ambition to revitalise town centres, and we will work closely with our funding partners the Department for Education and South Tyneside Council to make sure the project delivers the huge benefits a new college campus will bring.”
At the time of the mayor’s intervention last year, inflation was blamed for the project’s funding shortage.
A report said it had “not been possible to secure any additional funding from central Government” and that the college was “unable to borrow any further to invest in the project”.
Hebburn-based firm Castle were appointed in February 2025 to build the new campus, while Miller Homes has begun initial works to turn the Westoe site into almost 200 homes after taking over from previous developer Avant.
A spokesperson for Tyne Coast College said: “We want to reassure our local community that this does not put the project at risk. The new campus is progressing and remains on track to welcome students in September 2027.
“This position does not impact on jobs, and the College remains financially and operationally strong. This is a large, multi-funded project, bringing together a new build campus, the refurbishment of a listed building, specialist workshop facilities and new Halls of Residence. The review recognised this ambition, while also identifying oversight of the project needed strengthening.”
The college added that it was “fully committed” to the new campus and would work with the DfE to “further strengthen oversight and delivery arrangements”.
A spokesperson for South Tyneside Council added:
“The Notice to Improve does not change the council’s role in supporting delivery of this transformative project, nor does it detract from the council’s commitment to seeing the new campus completed.
“We will continue to work closely and constructively with Tyne Coast College, the Department for Education and other partners to support the successful delivery of this important investment in education and skills for South Tyneside.
“The relocated college remains the cornerstone of the council’s long‑term plans to revitalise and diversify South Shields town centre, boosting footfall and the local economy.”
Tyne Coast College also confirmed that Paul Mackings, recently installed as Reform UK’s new leader at the council, was involved in the project through his consultancy firm.
A spokesperson for the college said: “In late 2021, PMC [Paul Mackings Consulting] were enlisted to advise on planning matters relating to the sale of the existing college campus, enabling the college to progress plans to relocate to a new site.
“In April 2024, PMC Director Richard Spencer was seconded to the college due to his planning expertise. The original contract concluded in April 2026, following the College’s appointment of an Executive Director of Infrastructure and Transformation. As with many senior roles, due to the individual not being able to take up the position until 1st June, the secondment has continued on a month-by-month basis – until next month – to ensure a seamless handover of this complex project.”
