Question to the Department for Education:

To ask the Secretary of State for Education, whether she has made an assessment of the potential impact of extending VAT exemption to further education colleges on (a) college finances, (b) learner outcomes and (c) skills provision; and whether she has had discussions with the Chancellor of the Exchequer on this matter.

While VAT is a matter for His Majesty’s Treasury, we are aware that the VAT status of providers is an area of interest for the sector. Many public bodies cannot recover the VAT they incur. The government keeps all taxes under review, and any proposals to change the tax system would need to be considered in the context of the broader public finances.