HC Deb 27 June 1991 vol 193 c1130
14. Mr. Madel

To ask the Chancellor of the Exchequer whether he has any plans to change the rules that relate to value added tax on education establishments; and if he will make a statement.

Mrs. Gillian Shephard

My right hon. Friend keeps all taxation under review.

Mr. Madel

Will my hon. Friend consider an anomaly in the White Paper on further education which states that, once its provisions are made law, colleges of further education will no longer be able to recover value added tax on the education that they provide? At present, local education authorities and colleges of further education can recover VAT under section 20 of the Value Added Tax Act 1983. Should not that continue, as both types of institution are providing similar courses of study to people of similar ages?

Mrs. Shephard

That question is probably one for my right hon. Friend the Secretary of State for Education and Science. However, in the recent White Paper, "Education and Training for the 21st Century", the Government acknowledge that removing further education in sixth-form colleges from the control of local authorities would have implications for the colleges' ability to recover VAT. The White Paper also suggested that that factor would be taken into account when setting the total funding for the new sector.