The multi-million pound rebuild of Sandwell College will only go-ahead if the £80 million price tag is reduced, it was revealed today.

The college is one of 13 nationally to have made it through to the next round of funding bids for the Learning and Skills Council’s (LSC) further education building projects. But the college will be told to scale down its ambitious plans, with the LSC asking for reductions that are “significant but manageable”. It will also be asked to look at other funding streams.

However, it must ensure none of the educational benefits of the scheme are lost.

LSC chief executive Geoff Russell said: “While they show good value for money and excellent links with third party funding, we will ask each of these colleges to find additional cost savings in order that we can afford to fund additional projects.”

The 13 projects announced today have been selected from over 180 plans submitted to the LSC as part of the latest round of the Further Education Capital programme.

It was feared the project, which will see a new college constructed in Spon Lane, West Bromwich, could be in jeopardy after it was revealed that the LSC was facing a cash crisis when the Government put a block on spending.

The college has three bases, in West Bromwich, Oldbury and Smethwick, which will close once the new campus is completed, with a provisional opening date of September 2010.

Under the plans the new building will cater for 10,000 students and will include state-of-the-art facilities, as well as a food hall, bar and European-style piazza.

Discussions between colleges and the LSC will now take place as a matter of urgency.

The LSC used a criteria to decide which project would pick up money – including the impact on education and skills, the local economy, regeneration and value for money.

Sandwell College said it was unable to comment until officially notified of the plans by the LSC.