§ Mr. ColmanTo ask the Secretary of State for Education and Employment what action is being taken to ensure VAT does not have to be levied on basic capital approval borrowing by voluntary aided schools. [113448]
§ Jacqui SmithThe responsibility for premises work at voluntary aided schools is shared between school governing bodies and their local education authorities. The Department provides grant support at up to 85 per cent. for school governing bodies to help them meet the costs arising from their responsibilities for approved building work, including VAT. The Department does not provide basic capital approval borrowing direct to voluntary aided schools, although these schools can apply to the Department for loans to meet their share of the cost of premises work, including VAT.
§ Mr. ColmanTo ask the Secretary of State for Education and Employment if he will make a statement on the capital requirements of voluntary aided Anglican schools. [113447]
§ Jacqui SmithLocal education authorities apply to the Department each year for capital funding for voluntary aided schools as part of the Annual Capital Guidelines220W process. The applications include proposals for funding premises work at Anglican voluntary aided schools. They are prioritised locally by authorities, and are then assessed by the Department against the funding criteria and to ensure that the proposals represent value for money.
For 2000–01, £158 million has been allocated for capital and repair work at voluntary aided schools, including almost £26 million to be devolved direct to schools under Formula Capital arrangements. The total funding represents an increase of some 15 per cent. compared with 1999–2000, even after allowing for the 306 former grant maintained schools which joined the voluntary aided sector on 1 September 1999.