VAT: power to provide for persons to be eligible for refunds

Part of Finance Bill – in a Public Bill Committee am 11:30 am ar 7 Gorffennaf 2016.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Rebecca Long-Bailey Rebecca Long-Bailey Shadow Chief Secretary to the Treasury, Member, Labour Party National Executive Committee 11:30, 7 Gorffennaf 2016

I will keep my comments brief on this clause, which amends the Value Added Tax Act 1994 to enable public bodies to get VAT refunds when they enter into cost-sharing arrangements. I hope that the Minister can address a few points. First, the explanatory note indicates that some bodies will lose some of their existing funding as a result of the clause. It would be helpful if he could explain the criteria that the Government will apply. Secondly, can he give us more detail on the areas where the Government are encouraging shared services specifically? The tax information and impact note states:

“To date these services have mainly been in the fields of HR, recruitment and training, and IT services.”

Will the Minister confirm whether the Government plan to encourage shared services in other areas?