Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether if Further Education colleges will be eligible to o reclaim VAT for renewable energy installations.

Further Education (FE) colleges cannot reclaim the VAT they pay on goods and services.

However, FE colleges benefit from a zero rate of VAT on installations of qualifying energy-saving materials if their buildings meet the definition of being used “solely for a relevant charitable purpose”. This VAT zero rate is in place until March 2027, after which it will revert to the reduced rate of VAT at five per cent. This relief – worth over £1 billion – will aid households and charities in improving the energy efficiency of their buildings, help to reduce carbon emissions, and ultimately help us to reach our ambitious Net Zero by 2050 target.