Asked by: Darren Paffey (Labour - Southampton Itchen)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to reimburse VAT to colleges.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government strongly supports the work colleges do to enable people to gain the skills they need to thrive in the modern labour market.
Maintained schools who are funded by local authorities are able to recover their VAT through the s33 VAT refund scheme, which aims to ensure VAT is not a burden on local taxation. Academies can also recover their VAT under s33B, to ensure they are not disincentivised from leaving LA control. FE colleges do not meet the rationale for admission to either refund scheme.
Decisions on funding for the sector will be considered as part of the Spending Review.