Buried in the detail of the Budget announcements was a comment from the Government on the VAT treatment of university degree level education and the possibility of extending the existing exemption to commercial entities supplying such education. The responses to a consultation on this area identified a number of significant issues and concerns with the options proposed. As a result, the Government will seek to develop alternative options which will also cover possible changes to the exemption for further education. A further consultation will follow on this matter later in the year with a view to legislation in a future finance bill.