VAT: Colleges and Schools

Baroness Farrington of Ribbleton Excerpts

Monday 23rd February 2015 Lords Chamber

[Baroness Garden of Frognal]

As I said, the categorisation of sixth-form colleges was a matter for the Office for National Statistics, which categorised them as private sector organisations, hence the different approach to funding. In spite of the fact that the colleges cannot reclaim VAT, they have other benefits from being in the private sector: for instance, they can borrow and provide other ways of raising money to keep their provision going.

[Baroness Farrington of Ribbleton (Lab)]

My Lords, how can the Minister justify her Government’s policy, which has led to pupils in different categories of school getting totally different amounts of money? Free schools have been overfunded, as have academies; we now have another example, which the noble Baroness just referred to. Why on earth will the Government not treat every pupil and student as equally important, instead of trying to bribe, at worst, or muddy the water by allocating the money badly? We are not asking at this time for more money, but for fair allocation.

[Baroness Garden of Frognal]

As I said, this is not a matter that has been a decision of this Government. Successive Governments have had this distinction between schools and sixth-form colleges. Were the money there, of course we could do amazing things, but that is currently the position.