§ Mr. MorganTo ask the Secretary of State for Scotland 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.
§ Lord James Douglas-Hamilton[holding answer 19 March 1993]: In the 1993–94 allocations of capital grant to the further education colleges in Scotland provision has been made for the costs of value-added tax. Grant-aided colleges of higher education are currently liable for value-added tax on capital expenditure projects, and that will continue after 1 April 1993. There is no Further Education Funding Council in Scotland. The further education colleges will receive grant from the Secretary of State for Scotland.