Norfolk and Suffolk college bosses in autumn budget VAT plea

Further education colleges are currently unable to reclaim VAT for resources, whereas schools and academies buying the same things can.

Bosses at several of the region's colleges have previously pleaded to be exempt from the tax, arguing it has put them at a disadvantage.

They have now urged the new government to consider their latest plea in the autumn budget.

New chancellor Rachel Reeves is due to unveil her first budget at the end of this month, and college leaders say this would provide an ideal opportunity to "end the injustice". 

Jerry White, principal of City College Norwich (Image: City College Norwich)

Jerry White, chief executive of City College Norwich, has put his name to a letter to Ms Reeves alongside leaders of the College of West Anglia, East Coast College, Eastern Education Group and Suffolk New College.

He said: "Allowing colleges to reclaim the VAT in the way state schools and sixth forms do would provide a clear message that the treasury understands the role of colleges as vital public sector organisations, equipping students and apprentices with the skills needed to drive economic growth.

"It is, frankly, absurd that a school sixth form can be funded to buy 20 new PCs to run a digital T Level course, but the further education college around the corner offering the same T Level to the same age group of students is only able to buy 16 from the same funding, because it has to pay VAT."

The five East Anglian colleges were among 170 nationwide to co-sign the letter, which highlights financial struggles the sector is facing.

A government spokesperson said: "We recognise the vital role that FE teachers and providers play in empowering learners to seize opportunity and drive growth, which is why we are investing over £600 million in further education over the next two financial years.

"Decisions on future funding for further education will be taken as part of the spending review."