Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of potential impact of the cost of VAT on swimming lessons on participation in that sport.

VAT has been designed as a broad-based tax on consumption, and the twenty per cent standard rate applies to the majority of goods and services. While there are exceptions to the standard rate, these have always been strictly limited by both legal and fiscal considerations; one exception being certain supplies of education, which are generally exempt from VAT when certain conditions are met.

Where the sporting services provided by specified eligible bodies include an element of educational training or instruction, they may qualify as exempt supplies of education. Swimming lessons provided by local authorities may be classified as education and therefore exempt from VAT, as are supplies of education made by other relevant non-profit making bodies. This relief only applies to eligible bodies, such as non-profit making organisations, rather than all commercial providers of education.

Going further would impose additional pressure on the public finances, to which VAT makes a significant contribution.

VAT is the UK’s third largest tax forecast to raise £157 billion in 2022/23, helping to fund key spending priorities such as important public services, including the NHS, education and defence. Nevertheless, the Government keeps all taxes under review.