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Educational activities (VAT)

I shall just make this point first. The hon. Gentleman has to address the issue; as a good European, he will appreciate what I am saying. If the academies are funded, and not only their construction costs but VAT costs are paid, why would we again fund the costs that we had already met? It would not be possible to make academies unique without causing problems elsewhere. I have spoken to my officials, and I would like them to have discussions with academies again, because the issue still has not been sorted out, even though I understand that they got their financial advice from their accountants. I want to be absolutely satisfied that the existing VAT rules and the operation of the allowance within the zero rate are being used to the fullest extent. If not, we must make sure that they are, and we must discuss what assistance the Departments can give to ensure that. That has to be the first step, so although I am happy to meet my hon. Friend the Member for Regent's Park and Kensington, North, again in September or October, the first thing is to once more get representatives from the academies round the table with the officials, to find out exactly what the issues are and to find a way through under the current rules. If any matter is outstanding after that, my hon. Friend and I might need to have a discussion. That offers a positive way forward, because I absolutely accept the points made by my hon. Friend and the hon. Member for North Southwark and Bermondsey about the urgency with which we must sort out the issue.