Stafford College will have to scale down its £60 million re-building project after hearing it will get no Government funding for it.

The college was told yesterday that it will not be receiving Government money for its plans to create a cutting-edge campus in the town centre.

It had been given the green light to prepare ambitious redevelopment plans but was among 207 projects caught up in the news of a £3 billion shortfall in funding for the College Building Programme.

The college had recently received planning approval for its proposals for a £60 million phased project at its Earl Street campus that was set to create up to 340 jobs in the region’s hard-pressed construction industry.

The further education college’s plans had met rigorous criteria fixed by the Learning and Skills Council and was seen as one of the forerunners in the battle to secure the remaining funding.

Principal Stephen Willis admitted that he was “bitterly disappointed” by the announcement.

“We certainly believed that we had an excellent chance of receiving a share of the remaining Government funding.

“In the event, we learned that only 13 schemes will be financially supported and it is evident that government money has been targeted towards colleges in areas of social deprivation.

“We are also recognised as a financially stable college, with substantial reserves and in a good position to secure funding from other sources. It may be that these factors counted against us when it came to securing the much-reduced money currently available.”

Mr Willis thanked local businesses, community leaders and members of Stafford Borough Council for the support that they had offered the project and said that with our without Government funding, significant parts of the re-development proposal would still go ahead.

“I am particularly grateful for the help that we have received from David Kidney, who is already assisting us identify alternative sources of funding.

“The fact remains that some of our buildings very much need replacing, particularly the former workshop block which was hit by fire in 2008.

“We will now be directing our energies towards replacing these structures with something new, exciting and in-keeping with the outstanding reputation of this college,” added Mr Willis.