Universities: VAT on Alterations to Listed Buildings

Lord Eatwell Excerpts

Thursday 5th July 2012 Lords Chamber

[Lord Sassoon]

My Lords, there has been a consultation; there have been extensive discussions; and the response to the consultation was published on 28 June. Concessions have been made that will significantly help university listed buildings; for example, certain transitional repairs will be allowed to carry on for four summers. I shall not be drawn again into a discussion of listed places of worship, save to say that some of the same considerations apply. For example, anomalies in the arrangements affecting universities include the fact that those listed buildings which are used for business purposes such as teaching are already subject to VAT as are alterations to all non-listed university buildings, so there are very considerable anomalies here which we are clearing up.

[Lord Eatwell]

My Lords, I declare an interest as the president of Queens’ College, Cambridge, which contains some of the most beautiful grade 1 listed buildings in the country. The Minister did not accept the figure of £150 million put forward by the noble Baroness, Lady Deech, so I can perhaps help him by giving him a precise figure for the impact on my institution. My senior bursar tells me that the impact of this change on my institution will be up to 5% of the teaching, research and student support budget. Was that the Government’s intention?

[Lord Sassoon]

My Lords, the intention was to reduce a number of VAT anomalies, of which this was one, and to introduce generous transitional provisions relating to those measures.