Following a sustained and effective campaign by my hon. Friend and others, in last week’s autumn statement, the Government announced that we will give sixth form colleges the opportunity to establish themselves as 16-to-19 academies as part of the area reviews of post-16 education and training. A sixth form college that becomes an academy will be eligible to recover their non-business VAT costs.

Following a sustained and effective campaign by my hon. Friend and others, in last week’s autumn statement, the Government announced that we will give sixth form colleges the opportunity to establish themselves as 16-to-19 academies as part of the area reviews of post-16 education and training. A sixth form college that becomes an academy will be eligible to recover their non-business VAT costs.

Proposals for individual sixth form colleges to become academies will be considered alongside other recommendations from the relevant area reviews, which are taking place between now and March 2017. When a college’s application is approved, it will be eligible for VAT reimbursement as soon as it has been re-established with 16-to-19 academy status. Once all the area reviews have been completed, we will of course review which sixth form colleges have not yet taken up the option and what course they want to take.

Proposals for individual sixth form colleges to become academies will be considered alongside other recommendations from the relevant area reviews, which are taking place between now and March 2017. When a college’s application is approved, it will be eligible for VAT reimbursement as soon as it has been re-established with 16-to-19 academy status. Once all the area reviews have been completed, we will of course review which sixth form colleges have not yet taken up the option and what course they want to take.

I assume that the hon. Gentleman will be able to tell me, not least because a Labour Government put up with it for 13 years.

I assume that the hon. Gentleman will be able to tell me, not least because a Labour Government put up with it for 13 years.

I entirely agree with the Chairman of the Select Committee on Education. One of the great opportunities that this proposal offers is for sixth form colleges to become part of academy groups, to become the sixth form for those academy groups and to thrive.

I entirely agree with the Chairman of the Select Committee on Education. One of the great opportunities that this proposal offers is for sixth form colleges to become part of academy groups, to become the sixth form for those academy groups and to thrive.

Last week—perhaps it was the week before—the hon. Gentleman was shroud waving, suggesting that there would be cuts of somewhere between 25% and 40% to the per pupil funding for 16-to-19 education. I did not hear him welcome the Chancellor’s confirmation that it will remain flat cash throughout this Parliament. It is, of course, important that sixth form colleges can prosper, which is why we introduced this proposal.

Last week—perhaps it was the week before—the hon. Gentleman was shroud waving, suggesting that there would be cuts of somewhere between 25% and 40% to the per pupil funding for 16-to-19 education. I did not hear him welcome the Chancellor’s confirmation that it will remain flat cash throughout this Parliament. It is, of course, important that sixth form colleges can prosper, which is why we introduced this proposal.

What discussions she has had with the Chancellor of the Exchequer on the VAT treatment of sixth form colleges.

What discussions she has had with the Chancellor of the Exchequer on the VAT treatment of sixth form colleges.

What discussions she has had with the Chancellor of the Exchequer on the VAT treatment of sixth form colleges.

What discussions she has had with the Chancellor of the Exchequer on the VAT treatment of sixth form colleges.

My hon. Friend knows that we can have lots of discussions about this issue, as he and I have done, but ultimately the decisions are made by the Chancellor, and we all await those with bated breath.

My hon. Friend knows that we can have lots of discussions about this issue, as he and I have done, but ultimately the decisions are made by the Chancellor, and we all await those with bated breath.

I entirely understand those arguments and have some sympathy with them, but I would point out to my hon. Friend that sixth-form colleges, like further education colleges, also have the freedom to borrow, which many of them have taken advantage of. That is not a freedom that is available to other schools, so there are swings and roundabouts.

I entirely understand those arguments and have some sympathy with them, but I would point out to my hon. Friend that sixth-form colleges, like further education colleges, also have the freedom to borrow, which many of them have taken advantage of. That is not a freedom that is available to other schools, so there are swings and roundabouts.

I certainly agree with the hon. Gentleman that there are remarkable sixth-form colleges achieving extraordinary things, and I want to support them as best we can. As he knows, one option we are keen to explore is whether some sixth-form colleges might want to link up with groups of schools and multi-academy trusts in order to be stronger themselves and to provide more of their great education to more people.

I certainly agree with the hon. Gentleman that there are remarkable sixth-form colleges achieving extraordinary things, and I want to support them as best we can. As he knows, one option we are keen to explore is whether some sixth-form colleges might want to link up with groups of schools and multi-academy trusts in order to be stronger themselves and to provide more of their great education to more people.

To ask the Secretary of State for Business, Innovation and Skills, what assessment his Department has made of the effect of the increase of the minimum wage on small businesses which as a result of that increase will begin to operate above the VAT threshold.

To ask the Secretary of State for Business, Innovation and Skills, what assessment his Department has made of the effect of the increase of the minimum wage on small businesses which as a result of that increase will begin to operate above the VAT threshold.

To ask the Secretary of State for Business, Innovation and Skills, what estimate his Department has made of the number of small businesses that will begin to operate over the VAT threshold as a result of complying with the new minimum wage.

To ask the Secretary of State for Business, Innovation and Skills, what estimate his Department has made of the number of small businesses that will begin to operate over the VAT threshold as a result of complying with the new minimum wage.

To ask the Secretary of State for Business, Innovation and Skills, what assessment his Department has made of the potential effect of the increase in the minimum wage on small businesses operating under the VAT threshold.

To ask the Secretary of State for Business, Innovation and Skills, what assessment his Department has made of the potential effect of the increase in the minimum wage on small businesses operating under the VAT threshold.

To ask the Secretary of State for Education, what her policy is on the refund of VAT costs to sixth form colleges.

To ask the Secretary of State for Education, what her policy is on the refund of VAT costs to sixth form colleges.

Mr Speaker, as you know, I am a shy and retiring type, so I was only too happy to remain unheard on the Front Bench.

I welcome the hon. Gentleman’s questions. He is right that sixth-form colleges make strong arguments on this matter, but the blunt truth is that extending the same VAT provisions to them would cost the Chancellor £30 million every year, and those sorts of decisions will be considered in the spending review. However, the arguments that sixth-form colleges have made have been heard loud and clear.

Mr Speaker, as you know, I am a shy and retiring type, so I was only too happy to remain unheard on the Front Bench.

I welcome the hon. Gentleman’s questions. He is right that sixth-form colleges make strong arguments on this matter, but the blunt truth is that extending the same VAT provisions to them would cost the Chancellor £30 million every year, and those sorts of decisions will be considered in the spending review. However, the arguments that sixth-form colleges have made have been heard loud and clear.

To ask the Secretary of State for Education, what discussions Ministers in her Department have had with sixth form colleges on VAT exemption and linking with Academies since May 2010.

To ask the Secretary of State for Education, what discussions Ministers in her Department have had with sixth form colleges on VAT exemption and linking with Academies since May 2010.

I am aware of this long-standing issue, which the last Government also failed to correct. One of the things that I am looking into is the possibility of enabling sixth-form colleges to change their status if they are willing to link up with other schools. But that is something that has to be brought forward by sixth-form colleges themselves, and it is still subject to discussions with the Treasury, which is always pretty fierce on these matters. [Interruption.]

I am aware of this long-standing issue, which the last Government also failed to correct. One of the things that I am looking into is the possibility of enabling sixth-form colleges to change their status if they are willing to link up with other schools. But that is something that has to be brought forward by sixth-form colleges themselves, and it is still subject to discussions with the Treasury, which is always pretty fierce on these matters. [Interruption.]

To ask the Secretary of State for Education, what assessment she has made of the effect of not returning VAT costs of sixth form colleges on competition in the market for education provision for 16 to 19 year olds.

To ask the Secretary of State for Education, what assessment she has made of the effect of not returning VAT costs of sixth form colleges on competition in the market for education provision for 16 to 19 year olds.

To ask the Secretary of State for Communities and Local Government what recent discussions his Department has had with HM Treasury on removing full rate VAT on alterations to listed buildings with listed building planning consent; and if he will make a statement.

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To ask the Secretary of State for Communities and Local Government what recent discussions his Department has had with HM Treasury on removing full rate VAT on alterations to listed buildings with listed building planning consent; and if he will make a statement.

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