Chancellor Gordon Brown announced targeted pay incentives for universities but was silent on FE. And while Education Secretary Estelle Morris said “cash would enable colleges to modernise their pay arrangements” it included money only for the most successful colleges.

“The lack of any mention of pay was disappointing,” said Dr John Brennan, director of funding and development at the Association of Colleges. “We hope the Government has not lost interest.”

Paul Mackney, general secretary of the lecturers’ union Natfhe, warned ministers not to wait until the November Budget. “We will be on strike at the Labour party conference unless they come back with something before then.”