Colleges that refuse to become academies in England denied more than £100m a year, analysis finds

Sixth form and further education (FE) colleges that are not academies – state schools independent of councils – are missing out on a funding boost worth 3 per cent of their income as they are not eligible for a government VAT refund scheme, the report found. The Independent reports.

The same council-run colleges also lose out on the teachers’ pay grant – introduced by the government to cover some of the costs of a pay rise for teachers in schools.

Layla Moran, education spokesperson for the Liberal Democrats, said: “Successive governments have left our colleges and sixth forms underfunded and unloved. 

The Lib Dems say they would abolish “learning taxes” that council-run colleges face as part of a £1bn investment package for the sector.

Read more Colleges that refuse to become academies in England denied more than £100m a year, analysis finds 

Please tell us your thoughts in comments or via Twitter ~ Tamsin


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Categories: Academies, DfE, Funding, Further Education, Learning, Secondary and Teaching.


  1. jim grant

    Great to see this injustice finally getting some publicity. Most of the politicians I have spoken to about this don’t understand why you would penalise sixth formers in sixth form colleges relative to those in schools and academies. The roots go back to the launch of academies by Tony Blair and Andrew Adonis who wanted to give advantages to their new creations. Although academy boards have many of the same freedoms as sixth form colleges (SFCs) corporations they are treated as public sector for VAT whereas 6FCs are treated as private. This nonsense suits the treasury which is why it has been maintained. Most MPs of all parties now accept that the disparities in funding are unfair and are an impediment to social mobility. There is an opportunity now for cross-party consensus on getting rid of this unfair tax.

    Jim Grant
    Cirencester College.

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