HC Deb 09 June 1998 vol 313 cc898-9

'.—(1) After section 125 of the Education Reform Act 1988 there shall be inserted— "Charitable status of a higher education corporation 125A.—(1) A higher education corporation shall be a charity which is an exempt charity for the purposes of the Charities Act 1993. (2) So far as it is a charity, any institution which—

  1. (a) is administered by or on behalf of any higher education corporation, and
  2. (b) is established for the general purposes of, or for any special purpose of or in connection with, that corporation,
shall also be an exempt charity for the purposes of the Charities Act 1993. (3) In this section "charity" and "institution" have the same meaning as in the Charities Act 1993. (2) After section 22 of the Further and Higher Education Act 1992 there shall be inserted— "Charitable status of a further education corporation 22A.—(1) A further education corporation shall be a charity which is an exempt charity for the purposes of the Charities Act 1993. (2) So far as it is a charity, any institution which—
  1. (a) is administered by or on behalf of any further education corporation, and
  2. (b) is established for the general purposes of, or for any special purpose of or in connection with, that corporation,
 shall also be an exempt charity for the purposes of the Charities Act 1993. (3) In this section "charity" and "institution" have the same meaning as in the Charities Act 1993." '.—[Dr. Howells.] Brought up, and read the First time.

Dr. Howells

I beg to move, That the clause be read a Second time.

Mr. Deputy Speaker

With this, it will be convenient to discuss Government amendments Nos. 78 to 80.

Dr. Howells

The new clause relates to the charitable status of further and higher education corporations. It confirms that they are exempt charities.

Provision to confer exempt charitable status on higher education corporations was first introduced by the previous Government in the Education Reform Act 1988. The same arrangements were made for further education corporations in the Further and Higher Education Act 1992. The status gives certain financial advantages, for example in respect of rate relief and VAT.

The new clause re-enacts existing provisions about the charitable status of further and higher education corporations on a consistent basis with comparable provisions in the Schools Standards and Framework Bill. It is essentially for avoidance of doubt that further and higher education corporations have exempt charitable status. It does not seek to do other than maintain the status quo, and I commend it to the House.

Question put and agreed to.

Clause read a Second time, and added to the Bill.

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