Hundreds of thousands of pounds worth of funding for students in Waltham Forest is being held by the government in an unfair tax on learners, according to a college principal.

Ahead of the general election in May, colleges are calling for legislators to treat students around the country equally over tax attangements.

At present, sixth form colleges do not get their VAT refunded to them, unlike schools with a sixth form and academies.

The disparity in the system means colleges lose out on over £300,000 annually.

According to Paolo Ramella, head of George Monoux College in Chingford Road, Walthamstow, said the extra funds would mean more staff for the college or extra facilities for students.

He said: “This is a clear anomaly which should be rectified because it is unfair.

“It costs our college £308,000. 

"If that VAT was to come back to us we could fund around nice experienced staff for a whole year, we could develop student areas.”

The Drop The Learning Tax campaign is being led by the Sixth Form Colleges Association.

It is being supported by MPs, colleges, teachers and pupils all over the country.

Mr Ramella said the 16 to 18 age group is "historically underfunded", making it all the more important for sixth form colleges to receive VAT back.

Sixth form colleges also have to pay 20 per cent VAT on capital expenditure.

The Sixth Form Colleges Association said the government's position on VAT creates a "clear inequality".

There are around 93 sixth form colleges in the country.

In Waltham Forest there are two, including Leyton Sixth Form College, which provide education for over 2,200 students.