§ Lord Stoddart of Swindon
asked Her Majesty's Government:
Whether they are aware that at the Grendon Hall Local Authority Youth Centre youth training courses organised by voluntary organisations are levied VAT at 15 per cent. on the cost of such courses, whereas local authorities are not; and what action they intend to take to remove this anomaly.
§ The Secretary of State for Employment (Lord Young of Graffham):
The Government do not accept1178WA that there is an anomaly. The VAT relief to which the noble Lord refers applies to certain education and training, and to items supplied incidentally thereto, including accommodation and catering. These items are relieved only where they are provided to students by the same body as provides the education or training. This is the position at Grendon Hall only in respect of supplies to local authority students. Voluntary organisations which run their own courses are not charged VAT on the courses as such, but on the residential facilities provided at the Hall. As these would be chargeable with VAT if provided by a business in the private sector, it is appropriate that they should equally he taxed when supplied by a local authority.