Drop the learning tax: introduce a VAT refund scheme for Sixth Form Colleges

As this e-petition has received more than 10 000 signatures, the relevant Government department have provided the following response:

The government has explored the possibility of introducing a VAT refund scheme for sixth form colleges.

Sixth form colleges do not qualify for VAT refunds as they are not part of local government, nor are they academies.

The amount of VAT is on average approximately £335,000 per sixth form college per year and as there are 93 sixth form colleges, the estimated cost of introducing a VAT refund system for sixth form colleges would be in the region of £31 million per year.

The arguments for removing the sector’s liability for VAT are understood. However, the Department for Education cannot afford to cover the costs of doing so in the financial years 2015-2016.

Decisions regarding all 16 to 19 funding in the future will be subject to the outcome of the next cross-government spending round.