KEIGHLEY College should merge with two others to improve their financial resilience, according to a Government review of further education in West Yorkshire.

The Department for Education’s West Yorkshire Area Review has proposed the merger of Shipley College, Craven College in Skipton and the Keighley campus of Leeds City College.

The new institution would be called the Aire Valley College but would remain spread over three sites. A new report says this would “improve on the financial resilience of the current individual institutions, allowing investment and growth”, while also giving the colleges a better co-ordinated and coherent offer for students. It could unlock savings in back-office staff and enhance the delivery of apprenticeships, the review says.

Colin Booth, principal at Leeds City College, said: “At the moment, this is just a proposal and whilst a decision is being made, our strategy and plans for Keighley will not change. We will keep supporting the college to grow and develop in order to meet the needs of local employers and students.”

Craven College said it would be making no decision over whether to agree to the merger until a similar review for North and East Yorkshire was published in spring. Only then would the college board weigh up all the options, including the option to stay as it is, and decide what was best for its students, staff and community.

A joint statement by principal Robert Bellfield and chairman of governors David Mabbitt, said: “The college will always consider collaborative options which ensure it can continue to deliver and improve this service for students, employers and the local community now and for the future.”

The merger is among a variety of changes recommended for colleges across West Yorkshire to make them more financially stable. A local steering group, including representatives from West Yorkshire’s colleges, business leaders and councils, had met five times to develop various options. It was led firstly by Bradford Council’s former leader Cllr David Green and then by his successor, Cllr Susan Hinchcliffe.

Cllr Hinchcliffe said: “Given Government funding constraints the debate inevitably made each college consider their own financial sustainability. A wide variety of partnerships and collaborations were considered but not all were adopted. Each college has a board of governors who, quite rightly, are the ultimate arbiters of any proposal for change.”

Nav Chohan, principal of Shipley College, said: “The proposal could strengthen the ability of the colleges and our communities to capitalise on future opportunities in a more co-ordinated way. We are at the early stages of a complicated process so as yet we cannot presume a set date for the founding of the new institution.”

The review also recommended that Bradford College continues as it is, but that it could develop a joint venture with Leeds College of Building to deliver construction training.