Lord Storey (LD)

My Lords, I will speak to my other amendment in this group, Amendment 243B, but I will just add a few words on Amendment 243E, following on from my noble friend Lady Tyler’s comments. We are in danger of abandoning an entire generation of young people who do not follow the traditional university route. While apprenticeship places at levels 5 and 6 continue to expand, opportunities at levels 3 and 4 are shrinking. This surely is a cruel paradox. Young people who have university degrees will be able to access higher-level apprenticeships. Meanwhile, those who most need levels 3 and 4 to begin their careers—16 to 18 year-olds without prior qualifications—are left stranded. These young people are not lacking in ambition or ability. They simply seek a different path—one that is rooted in practical skills and real-world experience. Yet we are closing the doors in their faces at the very moment that they are ready to step through them. We saw at first hand the transformative power of apprenticeships for young people who thrive outside traditional academic settings. This amendment would ensure that, as we develop apprenticeship policy, we do not forget the young people who need these opportunities the most. It is about fairness, opening pathways, and giving every young person, regardless of whether they go to a university, a genuine chance to build a meaningful future. I urge the House to support it. On my Amendment 243B, we know that schools are not VAT-rated, and that sixth forms in schools are not VAT-rated. Then along came the academisation of our schools, and a very clever move was made by the noble Lord, Lord Gove—I hope I am not using his name in vain; he is not here—who saw a very quick way to enable sixth forms to become part of multi-academy trusts. So, guess what? The sixth forms that chose to go into a multi-academy trust were not VAT-rated. Those poor sixth forms who decided to stay on their own and not be swallowed up by a multi-academy trust are VAT-ed: they have to pay VAT. How unfair is that? The average stand-alone sixth-form college turnover is around £15 million, and it spends 80% or more on staff, examination fees, food and depreciation, which does not attract VAT. So a 20% refund on what remains would save them about £500,000. But, of course, would it be unthinkable that the DfE would bring sixth-form colleges into Section 33: in other words, they would not be VAT-rated but would not be FE colleges? Imagine what that extra money would do to attract students and further the skills agenda that is so important to the Government. Perhaps the Minister will tell us clearly why these stand-alone sixth-form colleges cannot be treated in a fair and equitable way, like sixth forms in schools or sixth forms in multi-academy trusts.