Public Bodies and VAT

Debate between George Eustice and Vicky Ford

Wednesday 17th May 2023 Westminster Hall

[George Eustice]

The hon. Gentleman makes an important point, but academies are included on the exempt list, which the Government amended specifically when academisation started, so that schools would not be placed at a disadvantage by leaving the local authority. Councils are also on the list, so they can reclaim their VAT inputs.

My argument is that His Majesty’s Treasury should, at the earliest opportunity, introduce a statutory instrument with respect to section 33 of the 1994 Act to ensure that FE colleges are treated fairly and that this anomaly is corrected. FE colleges would therefore be able to reclaim VAT on their inputs.

The Treasury guards tax policy ferociously, but it also has a duty to be fair and consistent and to at least have defensible policies in these areas. Under the current arrangements, there is a ludicrous situation whereby a school with a sixth form can reclaim its VAT, but an FE college with a sixth form cannot. That makes no sense whatever.

[Vicky Ford (Chelmsford) (Con)]

My right hon. Friend is making a really important point. Chelmsford College in my constituency provides an outstanding education to young people from all over Essex, providing skills and training, as well as education. It pays around half a million pounds a year in unrecoverable VAT, which means it cannot pay the same level of remuneration to its staff as a local school with a sixth form can. That is not fair, not just for the college, as compared with a school or academy, but for the young people involved.

[George Eustice]

My right hon. Friend raises an incredibly important point. It is profoundly unfair on the young people who choose to attend an FE college, and perhaps even to do A-levels in its sixth form, that the college is treated differently—almost as a second-rate institution—when a school with a sixth form enjoys the higher funding and benefits that come with being able to reclaim VAT.

Direct Payments to Farmers (Legislative Continuity) Bill

Debate between George Eustice and Vicky Ford

Committee stage & 3rd reading: House of Commons & Committee: 1st sitting: House of Commons & 3rd reading & Committee: 1st sitting
Tuesday 28th January 2020 Commons Chamber

[George Eustice]

It includes the basic payment scheme. Only direct payments are in the Bill’s scope, and that includes the annual area payments that most farmers would receive.

As we are not contributing to the next multi-annual financial framework, we have decided that we should fund this year ourselves to provide farmers with continuity. The withdrawal agreement therefore disapplied the direct payment scheme to the UK. The European Union (Withdrawal Agreement) Act 2020 applies that agreement, and disapplies the direct payment scheme, so to pay farmers for this year, we have to provide this regulation.

[Vicky Ford (Chelmsford) (Con)]

Chelmsford is largely an urban constituency, but when I visited one of my local farms just before Christmas, it was devastating to see that, because of the wet weather, people there had not been able to plant any of their winter wheat. They are doing some fantastic work with new crops such as millet, so that we do not need to import that. Will the Bill help to give farmers across Essex and the east of England the certainty they need at this challenging time?

[George Eustice]

The Bill will absolutely give them that certainty. The Bill is essential if we are to give farmers their direct payments—those area-based payments—in December. If this direct payment regulation did not come into UK law, we would be unable to do that.

Oral Answers to Questions

Debate between George Eustice and Vicky Ford

Thursday 31st October 2019 Commons Chamber

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

I thought for a moment that for the first time in six years we might not get on to fisheries and agriculture at DEFRA orals. May I take this opportunity, Mr Speaker, along with others, to thank you for your chairmanship and stewardship of these occasions and wish you well for the future? May I also record a tribute to Reverend Rose, who is also leaving us? She not only presided over my marriage in St Mary Undercroft but baptised my daughter. Many Members have benefited from her pastoral support and advice.

I had a meeting with officials yesterday to discuss the issue of cod and the EU-Norway negotiations. Those negotiations will take place during November. I remain Fisheries Minister during the election period and will continue to monitor events. The right hon. Gentleman is right that the December Fisheries Council that formally adopts these proposals will be about three days after the general election. I hope still to be in place and to go there, but if I am not, I am sure that whoever my successor is will have a steep and enjoyable learning curve in coming to terms with the complexities of the December negotiations.

[Vicky Ford (Chelmsford) (Con)]

T4. Mr Speaker, may I also thank you for your many hours and years of dedication in the Chair? But there is one issue that still has to be resolved, which is the harassment of and threats to female colleagues. I was particularly concerned to hear that a female candidate has already received a death threat this week. Could you use your last few hours and days in this position to urgently look at what more we can do to ensure that everybody is kept safe at this election? No one should be discouraged from standing because of their sex, their race or any other reason.It is a great honour to be in this place. One of the things that I have most enjoyed doing is cajoling so many colleagues to take part in the “give up plastic for Lent” challenge, which opened our eyes to the fact that we need action by Government and across society to deal with the scourge of plastic waste. Does my right hon. Friend agree that the Environment Bill is a step change in how we deal with plastics and that one of the first actions of the next Conservative Government must be to bring the Bill back and get it through Parliament?