Source · Select Committees · Education Committee
Recommendation 59
59
FE and sixth form colleges face an unjustifiable VAT burden on expenditure.
Recommendation
Whilst academies and schools with sixth forms do not have to pay VAT, FE colleges and standalone sixth form colleges are not eligible for refunds in the VAT they incur on their expenditure. As colleges were reclassified as public bodies in 2022, this arrangement is unjustifiable and FE colleges and sixth form colleges should now benefit from a VAT exemption, which would align them with other post-16 education providers. (Conclusion, Paragraph 219)
Government Response
A response document is linked to this report, dated 9 December 2025. Response attribution to this conclusion has not been verified. Read the response document ↗