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College VAT Victory Brings Hope of Multi- Million Pound Windfall High-Flying Learners Open Swan Lake

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College VAT Victory Brings Hope of Multi- Million Pound Windfall High-Flying Learners Open Swan Lake EDITIONS TO GO FE Week FE Week news ~ analysis ~ jobs ~ fun chief new apprenticeships boss — Page 2 Dame Jackie defends Barnfield — Page 6 Monday, February 24, 2014 Edition 93 College VAT victory www.feweek.co.uk brings hope of multi- High-flying million pound windfall learners open @RebeccaKCooney we will be looking into, but we’re waiting for [email protected] legal advice.” Swan Lake A Middlesbrough College spokesperson said it would also investigate claiming back Colleges could be in line for a multi-million on its Waterside Brasserie. pound VAT windfall with a tribunal judge And the Association of Accounting having ruled against Her Majesty’s Revenue Technicians (AAT) encouraged other colleges and Customs (HMRC) over a Hampshire to investigate. training restaurant. Brian Palmer, AAT tax policy adviser, said: Brockenhurst College was awarded around “While we are not surprised as the argument £55,000 after it was found the supplies for the college put forward makes perfect its on-site training restaurant, MJ’s, were sense, it is pleasing to see the college put its integral to educating students — and so case forward and other FE colleges may be should have been exempt from VAT. incentivised to do the same. The fi gure represents a refund of four “It would serve FE colleges in their best years’ worth of tax paid to HMRC on supplies interest to relook at their supply chains. to the 50-seater training restaurant, which is “In the current economic climate where staffed by students and open to the public. funds are tight, receiving a rebate could And with more than 160 colleges in make all the difference to a college… it will England operating similar facilities, plus be interesting to see if other FE colleges also other training enterprises such as hair investigate.” salons, spas and theatres, successful payback He added: “Brockenhurst College argued campaigns in the vein of Brockenhurst’s the restaurant supplies were exempt by could therefore net the college sector tens of virtue of being part of the education and millions of pounds. vocational training for the hospitality Principal Di Roberts said the money would students — quite rightly, in much the be pumped back into the college, although a same way as we argue that concerts and HMRC spokesperson told FE Week the ruling performances given by students as part of was being considered “carefully, before their educational course are also deciding whether to appeal further”. exempt. Among England’s colleges with a training “The absence of a profi t element (to the restaurant is West Nottinghamshire College. supplies) demonstrated an intention to Its restaurant, called Refi ned, is the most supply education, rather than commercial highly-rated in Mansfi eld on TripAdvsor. catering or entertainment provision.” com. Julian Gravatt, assistant chief executive at A spokesperson for the college said: “We the Association of Colleges, said VAT law was are aware of the Brockenhurst case. “very complicated”. “We are reviewing any potential impact “This case revolves around the way in for the college with our professional VAT which VAT exemptions apply in cases where advisors as there is signifi cant complexity in students are providing services as part of the recoverability of output taxes — that is on their education,” he said. food and drink served — charged for ‘spin-off’ “Any savings in VAT that colleges make services whereby the liability of these types are reinvested for the benefi t of students, of activity will depend on the category of so the latest tribunal decision seems to be a student who delivers the service.” positive step forward.” A spokesperson for Westminster Kingsway College, which runs award-winning Vincent See editor’s comment Page 6 Midland Btec level three performing arts student Kieran Covell, Rooms restaurant, said: “It’s something that aged 17, performs at the Birmingham Hippodrome Pics: Simon Hadley he stage careers of a group of talented An audience of 2,000 was treated to the Teacher quals survey % learners took off with a Swan Lake-inspired learners’ ballet as a curtain raiser for Matthew Tperformance. Bourne’s production of Swan Lake. Students from Stratford-upon-Avon College, They had worked with members of the world FE Week exclusive Walsall College and Birmingham Ormiston famous choreographer’s dance company, New HAVE94 QUALS REQUIREMENT Academy, whose Kieran Covell took centre stage, Adventures. See pages 8 and 9 performed at the Birmingham Hippodrome. See page 11 2 FE Week Monday, February 24, 2014 www.feweek.co.uk FE Week news in brief Edition 93 McDonald’s education head College eyes up NCG FE Week is the only newspaper dedicated to gets bite at UK apprentice job Kidderminster College has launched a month- news, analysis, jobs and fun in the FE sector. long consultation on plans to merge with NCG director of the 157 Group, said: “It is @PaulOfford (formerly Newcastle College Group). And tweet us your thoughts @feweek or interesting to see someone from a private It had invited expressions of interest in with the hashtag #feweek [email protected] commercial background appointed to this a merger with colleges and other education role. We look forward to continuing our and training providers in September before Editor: Chris Henwood The appointment of McDonald’s education work with the National Apprenticeship deciding upon NCG. Kidderminster, with Head designer: Nicky Phillips chief Sue Husband as England’s new Service [NAS] under Sue’s stewardship.” a turnover of £9m, would merge with NCG, Sub editor: Paul Offord apprenticeships boss has been welcomed by Lindsay McCurdy, chief executive of which has a £179m turnover, to form a single Reporters: Freddie Whittaker FE sector leaders. Apprenticeships4England, said: institution for next academic year. Rebecca Cooney Ms Husband, national “I think this is a very positive The consultation closes on March 21. Visit Sales executive: Hannah Smith education manager at appointment. It is going to kidderminster.ac.uk/merger-consultation or Administration: Victoria Boyle McDonald’s Restaurants Ltd UK, be a steep learning curve for ncgrp.co.uk/consultation for details. Financials: Helen Neilly will fill the shoes of David Way, her, as it will be very different Contributors: Bob Harrison who stepped down as director from McDonald’s, but maybe Ministers’ media aid Pauline Odulinski of the Skills Funding Agency’s having someone come in from a Skills Minister Matthew Hancock was one of Mick Fletcher apprenticeship division in business background will shake several Department for Business, Innovation August. Sue Husband (Pic: things up for the better.” Twitter – @susiesue257) and Skills (BIS) ministers to benefit from a FE Week intern: Danielle Elton Stewart Segal, chief executive The agency had put the £10,800 package of media training, a Freedom of the Association of Employment director of apprenticeships of Information response has revealed. Managing director: Shane Mann and Learning Providers, told FE Week: and delivery services role out to advert in His predecessor, John Hayes, was also “I think it’s great that someone from an December with a £100,000 a-year salary. among those to get lessons. The training, from For an annual subscription to FE Week for employer background has been appointed to Ms Husband is expected to have 2010 to 2013, was from Escott Hunt Ltd and just £75 visit www.feweek.co.uk and click this role. We look forward to working with responsibility for the delivery of employer Millbank Media. A BIS spokesperson said me- on ‘subscribe’ at the top of the page. her.” engagement and the NAS. According to dia training aimed to help ministers undertake Martin Doel, chief executive at the the job advert, she will have “an outward- official duties. “Every effort is taken to ensure If you are interested in placing a product or Association of Colleges, said: “We are facing role … promoting the benefits value for the taxpayer,” they said. job advert in a future edition please click pleased to see someone with a solid of apprenticeships to employers and on the ‘advertise’ link at the top of the page grounding in education and industry taking embedding the new relationship between the on www.feweek.co.uk or contact: the lead in this important area of delivery.” agency, employers and providers”. SFA issues warnings Ms Husband was in charge of training She started at McDonald’s in 1987 when The Skills Funding Agency is issuing E: [email protected] at employer provider McDonald’s when it she was 16 years old and studying for her warnings of a “breach of the funding rules” T: 020 81234 778 received a grade two rating from Ofsted, in A-levels. She worked her way up through over subcontractors who didn’t make it onto November 2010, following its only inspection the company from serving customers and the Register of Training Organisations for the to date. working in the kitchen to being appointed second consecutive time. Top Apprenticeship Debate The agency paid McDonald’s £10.5m head of education in 2007. It is writing to lead providers calling (#AD2014) tweets: in 2010/11, £6.8m in 2011/12, and £5.1m in An agency spokesperson said: “We can on them to sever contacts with affected 2012/13. Its current allocation is £10.1m from confirm that Sue Husband will be taking up subcontractors. An agency spokesperson said: @StockdaleJ 16 to 18 apprenticeship funding and the adult the post of director of apprenticeships and “We will be writing to their lead providers Patrick Craven from @ skills budget. Learndirect is a subcontractor delivery service later this year.” shortly asking that contracts with these cityandguilds right, need to get to allocated £4m.
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