33
Accepted
There was strong support amongst our evidence from HE providers for the positive benefits of...
Conclusion
There was strong support amongst our evidence from HE providers for the positive benefits of sharing services between higher education providers, but we have heard that a significant barrier to this is VAT on shared services for HE. Its removal would increase efficiency and enhance collaboration between providers. It is disappointing that HM Treasury was unable to provide us with details of the VAT receipts it receives from higher education providers that currently are sharing services and not benefiting from the Cost Sharing Group VAT exemption. (Conclusion, Paragraph 175)
Government Response Summary
The government states it is already working across departments to explore how VAT rules constrain collaboration and is engaging with the sector on non-legislative measures, such as targeted guidance, to improve efficiency and foster more collaboration.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
PLANS ALREADY IN PLACE We are working across Government to jointly explore whether/how VAT rules constrain effective collaboration. The Government is working with the sector on non-legislative measures such as targeted guidance, better visibility of effective practice and clarity on the ambition for more collaboration as set out within the Post-16 Education and Skills White Paper.
Source
Committee
Education Committee
Report
9th Report - Higher Education and Funding: Threat of Insolvency and International Students
12 May 2026
HC 807
Addressee Bodies
Department for Education
Timeline
Recommendation age
0.2 yrs
Report published
12 May 2026