Thursday, 19 November 2009 02:07 Geoff Russell, chief executive of the Learning and Skills Council (LSC), had some strong words for education providers at the Association of College’s (AoC) annual conference yesterday.

Mr Russell warned of further challenges as the financial climate forces the sector to reduce costs while also maintaining learner numbers and improving service.

"But improvement is not only right, it’s inescapable as the pressure from customer and employer choice that will be built into the new system becomes a powerful lever to raise performance," he said.

"In my view, before very long, the cost effectiveness bar will rise so that only colleges with strong leadership and management will thrive. The incentive for those that do will be more autonomy - for those that do not, we will act decisively to encourage better performance and if necessary, to insist on new governance and management."

With the LSC set to join a growing list of defunct quangos in just over four months, Mr Russell reminded colleges of the increased need to work together, and with private providers, to find new solutions to ensure the sector as a whole can prosper.

He added: "As this new world emerges, we must build upon the foundations of the improved relationship that I believe we have started. We have to continue the conversation about how we meet the challenges that the emerging environment have set us."