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The FEFC's demands for more control come as the council faces criticism for its role in the financial crisis at Matthew Boulton College, Birmingham. The council this week declined to respond to allegations that it provided funds to the college without the necessary student data returns, but in a statement it said that the college was "facing some difficulties in relation to the data returns".

"We are working with the college to ensure that the accuracy of these returns reflect activity, in order that their financial position can be properly assessed," the FEFC said.