Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an estimate of the potential annual cost to the Exchequer of introducing (a) a targeted VAT refund scheme for eligible further education colleges’ spending on publicly funded education and training and (b) a scheme initially limited to colleges’ capital expenditure.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
For their non-business activity, FE colleges are unable to reclaim VAT incurred. This applies to both capital and non-capital expenditure. The Government operate VAT refund schemes for schools and academies which are designed to ensure that VAT is not a burden on local taxation, and that academies are not disincentivised to leave Local Authority control. FE colleges do not meet the criteria for either scheme.
Whilst the Government does continue to look into the VAT position of FE colleges, we do not generally publish internal evidence relating to, or assessments of, tax changes where a decision has not been taken. Any decisions on tax policy are announced with accompanying costings at fiscal events, in the context of the overall public finances
In relation to business activity, FE colleges enjoy an exemption from VAT which means that they do not have to charge VAT to students but cannot recover it either.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the Home Office:
To ask the Secretary of State for the Home Department, what progress her Department has made in reviewing the police funding formula.
Answered by Sarah Jones - Minister of State (Home Office)
Home Office officials have started internal work on a wider review of the police funding formula to ensure that force funding is fair and keeps the public safe.
A new approach to allocating funding will be brought in as part of our reforms to police structures.
Next steps on the review of the funding formula, including consultation arrangements, will be set out in the coming months, once the Independent Review of police force structures has been completed and presented to Parliament.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the Home Office:
To ask the Secretary of State for the Home Department, what assessment her Department has made of the adequacy of the level of police finance.
Answered by Sarah Jones - Minister of State (Home Office)
Since the 2024 election, the Government has increased funding to policing by £2 billion. This year, funding to police forces is at its highest cash level ever, at £18.5 billion. All forces will see a real-terms uplift in their funding.
This year, the Home Office has established a Financial Resilience Framework to ensure a clear process and transparent approach to assessing financial resilience in all forces, supported by a joint HO/NPCC/APCC financial survey. This enables this government to review the adequacy of police funding across the sector and provide exceptional financial support where necessary.
Additionally, the Government is committed to a wider review of the police funding formula to ensure force funding is fair and keeps the public safe.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the Department for Education:
To ask the Secretary of State for Education, pursuant to the Answer of 2 July 2026 to Question 12832 on Further Education: VAT, whether her Department has made an assessment of the potential merits of introducing a targeted VAT refund scheme for further education colleges.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
While VAT is a matter for His Majesty’s Treasury, the department recognises that the VAT status of further education (FE) providers remains an issue of interest to the sector. The government continues to look into the VAT position of FE colleges as it keeps all taxes under review and any changes would be announced at a fiscal event.