DAVID Mowat MP is urging the Government to review the amount of VAT specialist sixth form colleges are required to pay.
The Warrington South MP said: “Priestley College delivers an outstanding education for many children in and around Warrington and it deserves to compete on a level playing field.”
Schools and academies with their own sixth form colleges have their VAT bills refunded by the Government, however, standalone colleges such as Priestley College don’t.
On average, many colleges have to pay £250,000 per year on their VAT bill, instead of supporting their students.
He added: “The current system of funding is unjustifiable and needs reviewing urgently. I am not calling for any special treatment, just fairness in the way funds are allocated.”
Schools and academies are able to share funds with their adjoining colleges, but specialist sixth form colleges are at a further disadvantage as they are unable to do so.
“Colleges like Priestley shouldn’t be disadvantaged by having to pay bills that other schools don’t. It’s not good for the college and it’s not good for the students,” said Mr Mowat.
A promise has been recently made by the Prime Minister, to look carefully at the VAT treatment of sixth form colleges around the country.