§ Mr. StrawTo ask the Chancellor of the Exchequer if he will make a statement on the liability of(a) local authority schools and (b) grant-maintained schools to pay value added tax in respect of trading activities incidental to the schools' educational purposes.
116W
Financial perspective Draft budget mecu £ million1 mecu £ million Commitment appropriations 1. Agricultural guarantee 35,039 24,417 35,008 24,396 2. Structural operations 18,009 12,550 18,009 12,550 3. Multi-annual programmes 3,115 2,171 2,679 1,867 4. Other policies 5,224 3,640 5,086 3,544 5. Reimbursements and administration 4,205 2,930 3,824 2,665 6. Monetary reserve 1,000 697 1,000 697 Total: commitment appropriations of which: 66,592 46,406 65,606 45,718 obligatory 38,729 26,989 38,548 26,862 non-obligatory 27,863 19,417 27,058 18,856 Total: payment appropriations2 of which: 63,241 44,070 62,407 43,489 obligatory 38,669 29,947 38,475 26,812 non-obligatory 24,572 17,123 23,932 16,677 1 The ERM central rate of £1 = 1.435 ecu is used throughout this reply. 2 There is only a global ceiling for payments.
§ Mrs. Gillian ShephardEducational materials supplied in class to school pupils, whether at local authority or grant-maintained schools, that are incidental to their education, and supplied by the providers of that education, are generally relieved from VAT. Where the educational establishment provides other goods which compete with similar supplies made by VAT registered traders then the normal VAT rules apply, otherwise distortion of competition could arise. However, generally such activities are mounted by individuals in schools so that tax is not payable until the VAT registration limit of £35,000 is exceeded.