HC Deb 19 March 1993 vol 221 cc408-9W
Mr. Morgan

To ask the Secretary of State for Wales what assessment he has made of the effect of the imposition of value added tax on all capital expenditure projects initiated by colleges of higher and further education after 1 April; what consultations he has had with the appropriate funding councils on this; and if he will make a statement.

Sir Wyn Roberts

Institutions of higher education are already liable for value added tax on expenditure in connection with capital projects. Further education institutions will become liable for value added tax when they leave the local authority sector on 1 April. This new liability for value added tax was taken into account in setting the provision for the further education sector in the 1992 public expenditure survey.

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