COLCHESTER’S schools and colleges could seek compensation from the Government for axed building cash.

Schools and councils across the country are considering billing the Government for the money they lost when it scrapped £55billion of funding under its Building Schools for the Future Programme.

At least two local authorities – Sandwell and Nottingham City Council – are known to be preparing legal challenges.

Conservative-controlled Essex County Council said it would not be seeking compensation and any decision would be made by individual schools and colleges. Those out of pocket include Colchester Institute, which spent £4.5million clearing a site for the second phase of development which never took place.

It had already invested £27million in the first phase, completing one of four wings, an energy and engineering centre, when the funding was put on hold in February 2009.

It also demolished its library and learning resources centre and laid the foundations for two new wings, a sports hall and performance hall.

Danny Clough, college chief executive and principal, said it also expected an extra £700,000 a year from the Skills Funding Agency as a result of its merger with Braintree College which did not materialise.

Other possible claimants could include secondary schools due to share in £130million as part of a major overhaul of education in Colchester.

Sir Charles Lucas Arts College was forced to forge ahead with plans to become an academy without the funding for a promised rebuild while St Helena School and Philip Morant School were also due to receive cash for rebuilding work and expansion projects.