1

A PROPOSALFOR MERGER

TOWER HAMLETS COLLEGE

REDBRIDGE COLLEGE

A NEW VISION FOR FURTHER EDUCATION IN EAST LONDON

2

PROPOSED MERGER

This publication outlines a proposal for merger between Tower Hamlets College and Redbridge College to take place on 1 April 2017. It also sets within it a broader vision for further education provision in east London.

The benefits of a merger between both Colleges for students, employers, staff and the broader community in both boroughs are also reviewed in the publication.

Both colleges have carried out independent Structure and Prospects Appraisal Reviews which have recommended merger.

Consultation on this proposal will run from 11 November until 11 December 2016. Feedback received during the consultation process will be published in December 2016.

Details on how to respond to the consultation can be found at the end of the publication.

Pro

po

sed

Mer

ger

3

JOINT FOREWORD

These are challenging times for further education colleges. Continuous funding pressures and changing markets require colleges to look afresh at their missions and how best they can serve their communities. Our response needs to be grounded in the needs of our students and be designed to enable them to succeed in an increasingly competitive economic environment.

Government policy now clearly supports the development of larger institutions that are both financially viable and able to adapt to address the country’s skills needs. It is our view that this policy direction is best articulated locally through a new vision for further education in east London. That vision is set out in this document.

Our guiding principle throughout this merger proposal is whether it will enhance opportunities for students. The new college will allow specialisms to develop in each borough and better facilitate the development of higher levels skills provision, apprenticeships and higher education opportunities.

By merging, we will be better placed to engage with employers and ensure that students are ready for the job opportunities of the future. Our proposed new college will also combine the best of each college’s long heritage in supporting the skills of our communities. Much has changed in the way in which learners have been funded in recent years and continued change is to be expected. As a larger, more robust institution, we will have greater ability to support our learners through this process and ensure they are not marginalised as a result.

Young people can expect a new college which recognises their individuality and provides a responsive and dynamic programme of study that allows them to progress to new learning opportunities, internships or employment and which recognises their talents and promises to develop them further.

Fo

rewo

rd

4

Fo

rew

ord

Both governing bodies are confident that this proposal will create a new college that is financially strong and which brings new opportuni-ties for students, staff, employers and communities. While the colleges are not neighbours, they both operate within the east London econ-omy and will be part of its continued renaissance. Separated by ten miles, the colleges have complementary provision that, taken together, presents a compelling offer for leaners from entry level to higher edu-cation. Crossrail will significantly reduce travel times between the new college’s campuses.

We do not expect the reorganisation of further education in east Lon-don to end with this proposal. Other opportunities are possible and we will bring forward further consultation proposals as and when they arise.

Your views on this proposal are essential. We want the merger to have the broad based support it needs if it is to be successful. Details on how to respond can be found at the end of the document.

We look forward to your comments on what we believe is a compelling vision for a new college in east London.

Lucy de Groot Chair of Governors – Tower Hamlets College

Paul GallagherChair of Governors – Redbridge College

Gerry McDonaldPrincipal & CEO – Redbridge College and Tower Hamlets College

5

Tow

er Ham

lets Co

llege P

rofi

le

TOWER HAMLETS COLLEGE PROFILE

Tower Hamlets College is a general further education (FE) college in the London borough of Tower Hamlets (LBTH) in east London. In 2015/6 the college taught 1600 students aged 16-18 and 4000 adult learners and total income was approximately £21 million. The college operates from two sites in Poplar, next to Canary Wharf and in Stepney, close to the City of London. In addition, the College offers part time English for Speakers of Other Languages (ESOL), provision in ten community venues across the borough. There is a broad based curriculum for students aged 14-19 and adults including A-levels, vocational programmes, professional programmes and Access to HE, ESOL, Skills for Life (SfL) and a trade skills curriculum. In 2014/5 it introduced a new Key Stage 4 programme for students aged 14-16 who are newly arrived in the UK with their families. The programme has proved highly successful and has been expanded in 2015/6. In August 2016, Tower Hamlets College and Hackney Community College merged. HCC is based in Shoreditch and serves over 10,000 students each year.

The college’s offer for employers includes corporate training across health and care, English and Maths, construction as well as the delivery of bespoke employability programmes for partner companies. The college’s apprenticeship programme is relatively small, covering business, administration, health and trade skills. Outcomes require improvement and will benefit from Redbridge College’s expertise in this area.

In 2013, Tower Hamlets was judged as Good following an Ofsted inspection, having made significant progress against a range of key measures. Success rates for learners have continued to improve, the proportion of good and outstanding lessons has increased and the College’s financial health is strong. This improvement has been undertaken during a period of reductions in core and project funding.

Curriculum and business reviews have continued to improve operational effectiveness and the curriculum offer. Courses that no longer meet funding body requirements or have poor outcomes have

6

Tow

er H

amle

ts C

olle

ge

Pro

file

been removed. The College’s inspection in December 2013 confirmed these improvements.

The curriculum has been developed to meet the needs of the local community which is reflected in the positive learner outcomes. Additional programmes for ESOL students enable learners to progress onto a range of vocational pathways and the broader adult offer has been repositioned for the unemployed, including programmes specifically for Job Centre Plus referrals. This approach has helped significant numbers of learners find local employment. Pressure on this programme has been intense since the end of mandated ESOL funding and the new College will work across the broader patch to find alternative funding sources to support this important work.

There are also programmes for both young people and adults in 12 of the 15 subject sector areas. The range of full-time vocational and academic qualifications offered for 14-18 learners and for adults at all levels up to Level 3 (GCE A-level equivalent), focuses on balancing the interests of learners with local employment needs and higher education aspirations. The College offers a limited provision of courses and professional qualifications at Level 4 and introduced an HNC offer in 2015/6.

Figures released in the Department for Communities & Local Government ‘Index of Multiple Deprivation’ show that Tower Hamlets has a population which is in most deprived 20% in the country. This is despite the wealth generated from the Canary Wharf development which sits within the borough. This means the College serves a cohort which is amongst the most deprived in the UK.

London Borough of Tower Hamlets

Tower Hamlets is a young and ethnically diverse borough. The population of Tower Hamlets is estimated at 295,000, an increase of more than 50,000 in just four years. The area is the third most densely populated borough in England. From 2001–2010 the borough’s population grew by 18%, three times the national average. It is a borough of complex, multiple and severe deprivation, ranking 7th of the 294 English local authority areas in the 2010 Index of Multiple Deprivation and is the most deprived in terms of income and housing deprivation. 40% of borough residents live in wards that are within the 10% most deprived nationally. The unemployment rate of 8.9% makes it the second highest of all the London boroughs and the third highest in Great Britain. Economic activity has recovered from its very low levels during the recent recession and is now in line with national averages. Child poverty is considerable. Tower Hamlets has the most severe income deprivation for children in England; 49% of children live in income deprived families compared to a London average of 32% and a national average of 21%.

Residents come from over 130 countries. 41% were born outside the UK. 47% of the population is non-white and 61% are under 39 years of age. The largest ethnic group other than white British is Bangladeshi, accounting for 30% of

7

Tow

er Ham

lets Co

llege P

rofi

le

residents. 77% of residents are from BME groups. There is a large demand for ESOL provision from this community. At primary school level, three quarters of learners speak English as a second language. Residents are well qualified compared to national averages at Level 4 and above (36% compared to 31% nationally). However, 23% have no qualifications, compared to 12% in London as a whole.

Key Stage 4 results have almost doubled over the last seven years and at 65% are now 2% above the national average for 5 GCSE A* to C grades including English and maths. Post-16 participation is high, with those not in employment, education or training at 5.5%. Since 1991, the development of Canary Wharf as a major financial district has brought considerable infrastructure development to the borough. Beyond this, the area is typified by a mix of modern apartment accommodation and housing association stock.

Provision for young people and adults in Tower Hamlets and neighbouring boroughs is extensive, including four FE Colleges within a five mile radius. A large number of private training providers operate within the borough and most secondary schools have established post-16 provision. The borough offers a comprehensive accredited and recreational adult offer through its lifelong learning service.

8

Red

bri

dg

e C

olle

ge

Pro

file

REDBRIDGE COLLEGE PROFILE

Redbridge College is a predominantly vocational college offering a wide range of courses to 3000 students across two campuses in Chadwell Heath and Ilford Town Centre. Specialisms include an Apprenticeship Academy, Urban Oasis a commercial salon in Ilford and a new Performing Arts theatre complex at Chadwell Heath.

It is the only FE college in the borough, with all secondary schools having a sixth form. In 2015/6 the Education Funding Agency (EFA) funded 1269 16-18 year olds and the Skills Funding Agency funded 1472 adult students through classroom based funding. The College enrolled 1127 HE students and delivered 1434 apprenticeships.

The college also operates a campus within Ilford’s Town Centre specifically to meet the adult learner needs in the local community, and to ensure coherent progression routes from community based provision.

Redbridge recruits 60% of its students from within the borough, though a significant number of students live in the neighbouring boroughs of Newham and Barking & Dagenham, both of which have high levels of deprivation and unemployment with lower achievement at GCSE and higher numbers of NEET young people than Redbridge borough. Redbridge College was judged as ‘GOOD’ by Ofsted in December 2015.

London Borough of Redbridge

Redbridge borough has a population of 293,000. It is the fourth most diverse borough in the country with approximately 66% of its population having a minority ethnic heritage.

The overall London trend towards increased diversity is reflected in both Tower Hamlets and Redbridge; by 2036 the majority of these borough’s populations will be made up of Black, Asian and other ethnic minority communities. Redbridge is currently one of the most ethnically diverse authorities in London having seen an increase in population of 19,000 since 1991, the 7th highest increase in London.

9

Red

brid

ge C

olleg

e Pro

file

The percentage of people in Redbridge for whom English is not their first language is in line with the London average of 12.4%. However, wards in the Ilford area (Clementswood, Loxford, Valentines wards) have significantly higher rates (between 20 – 25%).

Seventy percent of Redbridge’s residents are of working age with the greatest number of people living in the borough in the 16-44 year old category. 22% of the population is aged between 0-15 years of age with the greatest density being located in the Ilford area (Clementswood, Loxford, Valentines and Newbury wards)Redbridge also has the third highest net migration of any outer London borough and the sixth highest international migration in London.

The potential for population growth within the borough is expected to be between 30% and 41.5% to 2036 and this is following a similar trend as to be found in Tower Hamlets. The demography of the area is changing; becoming younger and more diverse.

Redbridge is a high performing authority for students at Key Stage 4 with a number of significant strengths. Secondary school inspections show a higher than average number of good and outstanding schools.

Young people tend to stay in the borough to study. A high proportion of student’s progress from Year 11 into post-16 educational provision within Redbridge, with many remaining at the same institution.

With Redbridge borough’s population predicted to grow significantly over the period to 2020, demand for English language education will continue to expand. In addition, broader skills provision will be necessary to support the development of a well-qualified work force that can support the area’s economic development. In 2014/15 the College enrolled 3925 funded learners. 1452 of these were aged 16-18 (including apprentices) and 2473 were adults.

10

A N

ew V

isio

n

A NEW VISION FOR FURTHER EDUCATION IN EAST LONDON

The context in which FE colleges across England operate is changing at a rate not experienced during the past 20 years. Successive funding cuts to adult budgets, the introduction of income contingent loans for students over the age of 24 and the expectation of further reductions in state support for adult learning have placed colleges under considerable financial pressure. This is particularly the case in urban areas or where populations are more deprived. Colleges in east London are particularly susceptible to these changes.

For young people, London, in general, escapes the downward trend in student numbers forecast for the rest of the decade. However, the rapid increase in the number of schools with sixth forms and new free schools has placed pressure on 16-18 recruitment.

The labour market, too, is changing rapidly. The Greater London Authority estimates that London will create 35000 new jobs per annum until 2036. Significant growth is predicted in digital, creative, science and technology opportunities with an increased focus on higher level skills that best support the development of a modern, value added based economy. It would be remiss, however, to overlook the need for entry level jobs that provide the backbone to the infrastructure London needs to function.

East London

East London is dynamic, innovation and entrepreneurial. Its employer base ranges from the multinational banks of Canary Wharf to the new tech start-ups of Shoreditch. Strong net migration and a young population will help provide the skilled employees of tomorrow.

Significant challenges, however, remain. East London boroughs remain stubbornly disadvantaged and too many adults lack the skills they need to access opportunities that are being created here.

Further education (FE)

Colleges are based in and serve their communities. They are uniquely placed to link adults to the labour market, service employer needs and enable young people to achieve their potential.

11

A N

ew V

ision

It is clear, however, that colleges which serve a single borough, or that are held back by poor quality provision or by high levels of debt will not be well placed to deliver on this important agenda.

This merger proposal seeks to address this issue but is also designed to be part of a broader solution for FE across east London. Our hope and intention is that other colleges will wish to join this collaboration to form a sub-regional institution capable of responding to changing economic conditions and also to the paradigm shift that is taking place across the FE sector. This is illustrated below:

FECURRENTSTATE

• Colleges serving single boroughs• Focus on local skills needs. Some provision under threat• Funded through EFA and SFA with high funding agency dependency• Poor financial health and growing levels of debt

FEFUTURESTATE

• Large sub regional colleges • Aligned to broader LEP/GLA sector priorities• Provision coverage stabilised across a wider patch• Adult funding through a devolved authority • Financially stable colleges with sustainable debt level• Colleges as an essential driver of economic growth and social cohesion

Our vision for FE in east London is one of a strong college provision, integrated with the wider labour market and responsive to the needs of learners. This merger proposal is part of that vision. It will create a college strong in terms of finance and outcomes for students, focused on priority growth areas and able to leverage a coherent offer for young learners and adults to develop their employability and progression opportunities and resilience within the local community.

12

A N

ew V

isio

n

The merged college will be able to diversify its income base, reducing its dependency on funding agencies and provide a stable base for future growth. Provision will be rationalised where it is no longer fit for purpose and does not support learner progression. The combined college will be debt free and able to bid for capital funds from an unencumbered balance sheet. Specialisms, supported by employer demand and growth opportunities will form the focus of investment.

RATIONALE FOR MERGER

At first glance, the case for a merger between Redbridge College and Tower Hamlets College may not appear to be obvious. The colleges are located at opposite ends of the north east London area – separated by ten miles. They are not located in adjacent boroughs. Geography, in this case, is not the primary driver for collaboration. Rather, it is the view of both colleges that a merger will enhance the prospects of each beyond their ability to do so alone. The rationale is set out below:

The colleges are part of an existing strategic alliance

In April 2015, Tower Hamlets College, Redbridge College and Newham College formed a federation (East London Colleges Alliance) to promote their common interests and serve as a vehicle for joint bids and cost savings. To date the alliance has worked collaboratively on this agenda and also secured secondments for staff across the partner colleges to share costs. The colleges know each other well and continue to develop ever closer working relationships across both curriculum and support areas.

In August 2016, Tower Hamlets College merged with Hackney Community College. This merger is progressing well.

A NEW VISION FOR FURTHER EDUCATION IN EAST LONDON

• A strong FE College fully connected to the opportunities of the area and the Capital

• Financially stable with a diverse income base

• Provision that is at least Good and aspires to be Outstanding

• Connected to the needs of its community

• Positioned to influence the skills agenda in partnership with funding bodies and employers

13

A N

ew V

ision

The colleges share similar economic characteristics and growth prospects

They serve communities and economies that are similar in some of their signifi-cant characteristics. Levels of income deprivation are similar as is the extent of economic activity amongst the population. Importantly, both boroughs continue to benefit from large scale inward investment such as the extension of Canary Wharf, the redevelopment of Ilford as a metropolitan growth area and, of course, Crossrail. Finally, future job growth in both boroughs is expected to be in higher level skills, managerial positions and the service sector.

The colleges have complementary curriculum offers

The curriculum offer of each college is complementary. Tower Hamlets College’s strengths in business, special educational needs and disabilities (SEND) and ESOL and those of Redbridge College in sport, music and hair and beauty provide a cohesive, broad offer for learners. Tower Hamlets has retained an A-level offer while Redbridge College offer better established HE and apprenticeship programmes.

Together, the colleges will be debt free and financially stable

Tower Hamlets College is graded as Outstanding in terms of financial health by the SFA. Redbridge College is currently completing asset sales that will leave it debt free. The combined college, with a total income of £35m will be better placed to adapt to a changing funding environment.

Through merger, the colleges will be better placed to address the skills needs of the Capital’s future labour market

Colleges need to demonstrate they are aligned to employer needs if they are to flourish in the future. Large, stronger colleges which are able to operate across sub-regions such as east London will be able to engage with employers as they shape their skills needs for the next decade and beyond.

14

Ben

efits

BENEFITS FORSTAKEHOLDERS

We believe that the merger proposal would bring the following benefits for the colleges’ stakeholders:

CRITERIA IMPACT OF PROPOSALS

Does the proposal offer a compelling vision for securing a sustainable future for provision in the area, which meets the needs of learners, employers and the wider community?

The merger proposal presents a new vision for further education in East London that will:• Establish a large, more sustainable institution• Better meet the demands of employers and their skills needs• Provide a broad coherent curriculum offer• Benefit the community with provision that helps them progress into work or further study.

Does the proposal offer high quality strategic leadership and management?

Whilst the proposal has strong merit on its own terms, it should be seen as part of a broader solution for FE and skills provision for the east London sub-region. The management team across the colleges are well established and at Tower Hamlets have secured a significant turnaround in the college’s finances and student outcomes.

How will financial viability, sustainability and value for money be secured?

Together, the colleges will be debt free and less dependent on agency funding. The merged college will be better placed to pursue an effective income diversification strategy as new opportunities emerge.

What is the impact of the proposal on staff?

The proposal does not seek to reduce headcount through managing duplication but would aim to manage staff costs down by voluntary means over the near to medium term.

What is the impact of the proposal on learners?

Learners will benefit form a viable curriculum offer that connects to local skills needs. Full programmes of study will meet learners’ needs and aspirations and help them progress to employment or further study. Specialisms will be better developed allowing learners to progress to higher level skills and employment.

What is the impact of the proposal on employers?

Employers will be central to the college’s development, shaping provision and holding the merged college to account for its work on skills priorities. The college will seek to develop new strategic partnerships, building on existing employer relationships and forging new ones, particularly in growth sectors.

What is the impact of the proposal on the local community?

It will give the local community a strong, independent, financially secure college that connects with their aspirations and which they hold in high esteem.

What is the impact of the proposal on competition?

We do not envisage the proposal as detrimental to any neighbouring schools or colleges.

What is the impact of the proposal on the quality of provision?

Redbridge College is currently assessed as Good by Ofsted. The merger would ensure that the new college is making strong progress towards Outstanding across the breadth of its provision.

15

The N

ew C

olleg

e

THE NEWCOLLEGE

The merged college will be financially robust with a broad and coher-ent curriculum offer. It will be free of debt and less dependent on government agency funding. The combined college will have the resources to co-invest, with employers and funding bodies, in the infrastructure need to develop a modern, adaptive college that is fit for the demands of a complex 21st century economy.

Curriculum

The development of the curriculum offer in both colleges has had a positive impact on learner outcomes. Programmes of study for young people and adults balance specialisms and employability and enable progression. The broad adult offer has been repositioned for the unemployed, including the provision of maths, IT and employability courses, coupled with work experience. This approach has helped significant numbers of learners find local employment. The wide range of full-time vocational and academic qualifications offered for 16-19 learners and for adults at all levels up to Level 3 and 4 focuses on balancing the interests of learners with local employment needs, and higher education aspirations.

The curriculum offer will deliver to the communities the best of both colleges, retaining their distinct provision.

Specialisms

Tower Hamlets College is an outstanding provider of business, ESOL and SEND courses. Redbridge College offers strong provision in sport, media and science and has just opened a new performing arts centre. As a combined college these specialisms can be developed and better linked to employment and progression opportunities.

In addition, new skills provision in health and construction can be developed across east London. Of particular importance here will be developing higher level skills and apprenticeship provision that is co-developed with employers and leads to sustainable employment in skills shortage areas.

16

Fin

ance

s

FINANCES

The merged college will be financially robust and be better placed than each college is presently to deal with future threats to funding. Shared support functions will help achieve best value and a common approach to curriculum planning across the new college will deliver further efficiencies without compromising the student experience.

The new college will:• Increase the volume of students in Redbridge who access a full programme of study• Develop a joint apprenticeship delivery service, utilising Redbridge College’s expertise in this area• Ensure that income diversification continues by expanding commercial, HE and apprenticeship work• Ensure that the new college is debt free with a financial grading of at least Good

HOW WILL THE NEW COLLEGE BE BRANDED?

The Redbridge College identity will be retained for recruitment and branding purposes. Redbridge College will be part of a wider college group, the overarching name of which is currently being discussed with the Deprtment of Education.

Mer

gin

g a

nd G

over

ning

17

Mer

gin

g a

nd G

over

ning

Legal form of merger

It is intended that the merger will take the form of a Type B, whereby Redbridge College Corporation will dissolve on 31 March 2017 and its assets and liabilities will transfer to Tower Hamlets College Corporation. The two colleges will become a single entity on 1 April 2017.

MANAGING AND GOVERNING THE NEW COLLEGE

The current Group Principal and CEO and the Borough Princial will continue in these roles. Should the merger be approved, a shadow board will be established in early 2017 to oversee implementation of the merger. At the point of merger, the designated number for the Corporation of Tower Hamlets will be expanded to ac-commodate the number of Redbridge governors who wish to serve. The corpora-tion will ensure that staff and students are represented from Redbridge and Tower Hamlets.

The curriculum model for the new college will be developed from January to July 2017. It is anticipated that a model will be developed that allows for local campus based provision with higher level skills at specific campuses as appropriate.

18

Next S

teps

NEXTSTEPS

The proposed timetable to merger is set out below:

11 November – 11 December 2016 Consultation period

December 2016 Consultation outcomes published

January 2017 Both College Corporations asked to give merger approval

February 2017 Formal notice of merger published

1 April 2017 Merger of Tower Hamlets College and Redbridge College into a single institution

19

Next S

teps

HOW TO RESPOND TO THIS CONSULTATION

You can respond to this consultation by:Filling in and return this page to:Judith Nelson, Clerk to the Corporation - Redbridge College, Little Heath, Barley Lane, Romford, RM6 4XT Or emailing: mergerconsultation@tower.ac.ukOr visiting: www.redbridge-college.ac.uk/consultation

Proposed merger between Tower Hamlets College and Redbridge College

Your name/organisation name (optional)

Your address (optional)

Please indicate in what capacity are you responding:

Your comments on the merger proposal:

Your questions arriving from the merger proposal:

Other (please specify)

Consultation Response

Student Employer/Local Business

College Staff Funding or other Government Agency

Local resident School

HE Institution Another College or training provider

20

21

www.tower.ac.ukwww.redbridge-college.ac.uk

A NEW VISION FOR FURTHER EDUCATION

IN EAST LONDON