Further Education: VAT
The question
To ask the Secretary of State for Education, what estimate she has made of the costs to FE colleges of their ineligibility for the VAT refund scheme.
Answered by Josh MacAlister
While VAT is a matter for His Majesty’s Treasury, the department recognises that the VAT status of further education (FE) providers remains an issue of interest to the sector. Analysis indicates that VAT receipts for FE colleges are around £200 million per annum. The government continues to look into the VAT position of FE colleges, noting my right hon. Friend, the Prime Minister’s commitment to look into this issue when it was raised at the Liaison Committee in December 2025. The government keeps all taxes under review and any changes would be announced at a fiscal event.
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