HL Deb 23 June 1998 vol 591 cc209-10

131 After Clause 27, insert the following new clause—

CHARITABLE STATUS OF FURTHER AND HIGHER EDUCATION CORPORATIONS

(".—(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." ").

Lord Whitty

My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 131. I shall speak also to Amendments Nos. 148 and 150.

These amendments deal with the exempt charitable status of further and higher education corporations. This is not a new matter. The last government made provision in the Education Reform Act 1988 to give higher education corporations exempt charitable status. The same arrangements were made for further education corporations when further education colleges became independent. Exempt charitable status confers certain financial advantages; for example, in respect of VAT treatment and rate relief.

Part of Clause 21 of the School Standards and Framework Bill makes comparable provision to deal with the exempt charitable status of the governing bodies of foundation, voluntary and foundation special schools. It is desirable to have consistent legal treatment of the school, further and higher education governing bodies that should have this status so that there is no doubt that they all are, or continue to be, exempt charities. Accordingly, the wording of Amendment No. 131 is designed to be consistent with Clause 21 of the schools Bill. But because further and higher education matters do not fall within the scope of the schools Bill, the necessary provision is included here.

Moved, That the House do agree with the Commons in their Amendment No. 131.—(Lord Whitty.)

On Question, Motion agreed to.