Further Education Colleges: Recovery of VAT Debate
Full Debate: Read Full DebateDepartment: HM Treasury
Lord Mohammed of Tinsley
Main Page: Lord Mohammed of Tinsley (Liberal Democrat - Life peer)Department Debates - View all Lord Mohammed of Tinsley's debates with the HM Treasury
Further Education Colleges: Recovery of VAT
Lord Mohammed of Tinsley Excerpts(1 month, 2 weeks ago)
Lords ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Lord Livermore (Lab)
There is a lot there. I am confident that HMRC accepts the law and is following the law, but I am more than happy to look into the points that the noble Lord raises.
Lord Mohammed of Tinsley (LD)
My Lords, I will return to colleges and the original Question from the noble Lord, Lord Forbes. I want to follow up on the issue that he raised about the amount of VAT that is collected from colleges—about £200 million, if I heard the noble Lord right. What assessment have the Government done of the opportunity cost in improved facilities, more equipment and staff training that could be delivered if colleges were able to get that £200 million in VAT refunded?
Lord Livermore (Lab)
As I have already said, the Government are aware of this issue and we are looking into the VAT position of these colleges. As I have also said, we have significantly increased the amount of funding that is going to FE colleges to do the exact things that the noble Lord is asking for: £1.7 billion to support colleges to maintain their estates and £375 million to expand capacity for post-16 education, among other investments.