The issue was raised in the House of Commons last week by Graham Allen,Labour MP for Nottingham North. He attacked "the extraordinary VATpenalty that new schools and colleges risk if they open up theirfacilities to the local community". He claimed that one sixth-formcollege in his constituency faced a tax bill of 2m for openingits doors to the community.
Treasury minister Ivan Lewis promised to take action. He said: "Theprovision of extended services and wider community use is our ambitionfor all schools, but I am aware VAT consequences have been a concern inthat respect. It is a live issue that we need to address as promptly aspossible."
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