The town's dream of a new £188m further education campus on Rigby Road and new nautical college in Fleetwood were left in tatters last month after funding body The Learning Skills Council announced central government cash for the ambitious plans had run out.

An inquiry released yesterday by Sir Andrew Foster branded the collapse of the scheme "predictable and avoidable" and said cracks in the plans had been showing as early as February 2008.

In his report, Sir Andrew demanded a quick, clear and fair resolution for the 144 colleges building projects affected.

Pauline Waterhouse, principal of Blackpool and The Fylde College echoed the call.

She said: "Like other colleges round the country we, of course, hope this situation can be resolved as quickly as possible.

"The campus redevelopment is a very exciting and unusual concept for education and the regeneration of the town.

"We are confident Sir Andrew Foster's report will consider our situation favourably and recommend that we are a priority for investment.

"All communications we have received suggest only a delay to the national programme of investment while the investigation is carried out – not a cancellation."

Mrs Waterhouse joined Blackpool MPs Gordon Marsden and Joan Humble in London yesterday as they headed to Westminster to meet Further Education Minister Sion Simon.

Blackpool's plans are so advanced the council is currently clearing the Rigby Road site, including the tearing down of the old Mecca dance hall.

Mr Marsden, MP for Blackpool South, said he was encouraged by the meeting.

He added: "It was extremely beneficial and the minister who was very impressed and sympathetic to hear Blackpool's college plans and regeneration plans as whole.

"It's vitally important that we keep up that lobbying towards the time when decision are going to be made.

"Obviously, no guarantees were able to be made but we left him in no doubt of the strength of support for plans in the town."

Last week, the head of the Learning Skills Council Mark Haysom resigned from his £200,000-a-year post, admitting there had been "failures" in the way the LSC had handled the project.

The colleges affected say they may lose at least £140m if urgent action is not taken to resolve the situation.

The LSC was managing a £2.3bn budget for the spending period 2008/11, but Sir Andrew's report said this was all but spent by Christmas 2008.

Blackpool's new FE college is among a backlog of projects worth £2.7bn.