VAT: Colleges and Schools

Lord Harris of Haringey Excerpts

Monday 23rd February 2015 Lords Chamber

[Baroness Garden of Frognal]

Once again, that is somewhat outside the remit of this particular Question, so it would probably be wisest if I let it lie.

[Lord Harris of Haringey (Lab)]

My Lords, given the answer that the noble Baroness gave to my noble friend, £31 million is being transferred from one hand of government to another. Why on earth can that not be reimbursed to the colleges?

[Baroness Garden of Frognal]

If we extend the scheme to the sixth-form colleges that are charities it would make it much more difficult for the Government to justify not providing similar systems for other charities. According to the Treasury, providing a VAT refund to all charities in this way would simply not be affordable at the current time.