College reclassification and funding impacts

Crescent Purchasing Consortium (CPC), in conjunction with leasing advisory partner Unilink, would like to take this opportunity to remind colleges of the Leasing Services DPS and the benefits this can bring to your institution. 

As a part of the reclassification of colleges to the public sector, colleges have been informed they are subject to new commercial sector borrowing restrictions. 

This includes FE institutions and Sixth Form colleges being required to seek permission from the DfE as a condition of such commercial borrowing. 

A new financial handbook is set to be created and become effective as of August 2024, to offer guidance around what the reclassification will mean in practice.  

Amidst the uncertainty concerning what funding may look like for the foreseeable future, one thing we know is that finance leases will not be affected by these controls, along with operating leases.  

Finance leasing is something schools and academies are currently unable to take advantage of.  

CPC, in conjunction with Unilink, would like to remind colleges of the Leasing Services DPS and the benefits it can bring to your institution. 

All manner of equipment is covered by the agreement and, alongside advice from Unilink, this agreement is perfectly placed to ensure institutions can gain the funding they require for products, services and projects.  

Procurement of the equipment should still be carried out under the appropriate CPC framework.  

All manner of lessors are welcome to apply, from UK-wide organisations to local banks and lenders. 

As a Dynamic Purchasing System, any number of organisations can apply at any point during its life.  

Institutions of all sectors can use this agreement, including primary schools, colleges and universities. 

Further information on how the Leasing DPS can be use is available on the web page linked above.  

If you would like your local finance provider to apply, they can do so via the Multiquote portal. 

The relevant reference is CA10962. 

As the situation develops, we endeavour to bring you the most up-to-date information through our relationships, but if you hear anything further and would like to share with us, please feel free to do so and we can work to ensure all colleges have received the same message. 

If you have any queries or concerns regarding this or the Leasing DPS specifically, please contact Lisa O’Shea, Leasing Services DPS Contracting Manager, on 0161 974 0947 or [email protected], or Unilink Director Phil Harrison, on 07973 797 087 or [email protected]