VAT: Colleges and Schools

Lord Lexden Excerpts

Monday 23rd February 2015 Lords Chamber

[Baroness Garden of Frognal]

Sure Start is somewhat wide of the remit of this Question, but the likely annual cost to the department of reimbursing sixth-form colleges for their VAT costs is currently estimated to be £31 million. That, in the totality of things, is not something that we can currently afford. We intend—or we would have intended—to look at this issue again in the event that we are in the next Government. We cannot predict what will happen for the next Government, but we hope that we would be able to level the playing fields rather more than they are at the moment.

[Lord Lexden (Con)]

Will my noble friend confirm that the Government intend to maintain the current tax arrangements in so far as they affect independent schools, and reject completely the proposals put forward by the Labour Party towards the end of last year?

[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.