And the National Construction College at Bircham Newton has also seen its £26 million redevelopment plans placed in jeopardy by Friday’s LSC announcement.

The College of West Anglia had been hoping at least part of its £100 million proposal, which includes relocating its Lynn campus to the Nar Ouse Regeneration Area, would be given the green light.

But it was not in the shortlist of 13 further education building pro-jects given the go-ahead to proceed to the next stage of development from more than 180 projects submitted for funding help.

College chiefs were left reeling three months ago when the Lynn scheme was not among eight pro-jects across the country pledged funding support by the LSC after a capital funding programme review.

The new site at South Lynn is part of a larger project to develop the college’s three campuses – the others are in March and Milton in Cambridgeshire. The March campus was among 27 originally short-listed but failed to make the final 13.

Principal David Pomfret said: “We are bitterly disappointed at the news. We were aware that the Lynn project was unlikely to receive funding in this round but we remained optimistic about our Fenland application.

“Friday’s announcement by the Government makes it clear that there is no immediate likelihood of any capital funding for either pro-ject. I am meeting David Hughes, who is in charge of the LSC’s capital building projects, on July 6 to discuss our next steps.”

It had been hoped work on the Lynn campus, earmarked for a site of more than 17 acres beside the Nar Ouse Way, could start in January. But with no LSC funding for at least two more years, the college will need to review its whole strategy.

National Construction College director Andy Walder said: “The NCC trains 30,000 adults and 800 apprentices every year across the UK – the majority at Bircham Newton.

“The college facilities are more than 70-years-old and in urgent need of redevelopment. Without this funding the college cannot continue to provide the training support the construction industry urgently needs. We are now actively seeking talks with the LSC to ensure they understand the unique nature of this project and to discuss how we can secure the re- development.”

Mr Walder said if funding could not be found for the project, which has been approved in principle by the LSC, it would be “a huge loss for industry and the region”.

The LSC’s statement said: “The Government has confirmed its continuing commitment to the further education capital investment programme, and this will continue into the next spending review period starting in 2011/12.

“The LSC will, in the meantime, help colleges whose projects are not proceeding in the short term to draw up a revised estates strategy and to examine other possible sources of finance, such as collective approaches to private financing and borrowing.”