HC Deb 21 June 2000 vol 352 c214W
Mr. Willis

To ask the Chancellor of the Exchequer what plans he has to specify the vocational training courses that will qualify for tax relief. [126809]

Mr. Timms

I assume the hon. Member is referring to the new Individual Learning Account framework being introduced shortly by my right hon. Friend the Secretary of State for Education and Employment and in Scotland by the Scottish Ministers. Clause 57 of the Finance Bill provides that employees will not be taxable on any financial contribution which their employers may make towards the cost of an eligible learning course for which a Government grant may be payable. The range of training which can qualify will be a matter for the Department for Education and Employment and devolved administrations, but I can confirm that it will be a very wide range.

Mr. Willis

To ask the Chancellor of the Exchequer what estimate he has made of the saving to the Exchequer that will result from the removal of tax relief for vocational training costs from students. [126808]

Mr. Timms

As the Chancellor made clear in his 1999 Budget statement, the savings from the removal of Vocational Training Relief (VTR), as set out in Table A2.1 of the FSBR 2000—will help pay for the Government grants and discounts that can be claimed under the coming Individual Learning Account scheme. The Government are making available £150 million in grants and discounts up to April 2002. In addition we are introducing in the Finance Bill a tax exemption for employees on employer contributions towards these learning accounts; the estimated Exchequer cost of this exemption is £10 million in a full year.