Question to the Department for Education:

To ask the Secretary of State for Education, for what reason the Government decided not to provide VAT rebates for sixth form colleges along with VAT rebates for sixth forms in state schools as well as academies and other free school variants.

Sixth form colleges (SFCs) do not qualify for VAT refunds as they are not part of local government, nor are they academies. The VAT treatment of SFCs is determined by their classification, which is designated by the Office for National Statistics. Colleges, including SFCs, have been liable for VAT since they ceased to be part of the local government sector in 1993. In order for SFCs to be classified differently significant changes to their governance, accountability and administration (i.e. in the direction of greater central government control) would be required, which may not be a route that SFCs wish to take. At the end of any such restructuring, the ONS would review how to reclassify the SFC. There is the possibility that, even after such changes, the ONS would not necessarily change their classification to one where it was possible for them to reclaim VAT.

Decisions regarding future 16 to 19 funding will be subject to the outcome of the next spending round where this decision may be revisited.