Police jobs at risk from VAT

Published on Thursday 23 February 2012 01:28

A SENIOR police officer has warned that staff may bear the brunt of a potential £22 million annual VAT bill through the creation of the new Scottish national force.

Chief Constable Kevin Smith, president of the Association of Chief Police Officers in Scotland, urged politicians to ensure the levy is waived by the UK government when the eight regional forces are merged.

Under current rules, police forces are treated the same as local authorities and are exempt from the charge under the VAT Act 1994.

However, the Scottish Government drew up its worst-case scenario that the HM Revenue & Customs might insist on the payment when the Police and Fire Reform Bill is passed at Holyrood.

Mr Smith said the money equates to about 800 staff. He said: “No one in Scotland wants this. This will be bad for policing and bad for Scotland.”

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9

KINGFISHER1

Friday, February 24, 2012 at 01:15 PM

Perhaps yet a further example of badly thought out legislation. Or is Mr Samond & Co trying to pick fights with UK Gov?

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8

samcoldstream

Friday, February 24, 2012 at 11:54 AM

Yesterday, a serving Assistant Chief Constable, and former Welsh Chief Constable, have called on Policing to be devolved to the Welsh Government in exactly the same way as Scotland. The argument being that Wales is a small country that does not require four separate Police Forces and which quadruples costs. (Source: The Times) The UK is moving towards a Federal State.

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7

Lachie Mhor

Thursday, February 23, 2012 at 08:40 PM

A litle bit late in realising this could be an issue. Mr. Smith was the Chief Constable of the smallest police force in Scotland and contributed little in the way of VAT and managed a budget which was less than an 8th of Strathclydes. Has examination been made of the communications systems, crime recording methods and the effective use of personnel. Will an officer who has been disciplined in Glasow find himself posted to the Outer Hebrides for career development. This is a policy that is being rushed through with little thought for the future effects on Scottish society.

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6

Tartancult

Thursday, February 23, 2012 at 08:38 PM

"Westmister's maelevolence to cotland knows no bounds" ---------------------I may not agree with what you said but I will defend to the death your right to mangle the language.

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5

Willie Boy

Thursday, February 23, 2012 at 05:41 PM

Westmister's maelevolence to cotland knows no bounds. Levying VAT on Police Forces is just a nonsense - but when it comes to punishing Jocko - every little helps.

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4

Highland Hibby

Thursday, February 23, 2012 at 01:03 PM

That's #1\2 not 12. Flamin' site.

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3

Highland Hibby

Thursday, February 23, 2012 at 12:56 PM

#12 Nothing to do with London as VAT is an EU tax that all EU countries apply. The simple way around it is to increase the budget provided by £22m per annum and collect the VAT. No loss to Government and EU VAT regulations are satisfied. Like all Government departments, any tax they pay the Treasury has already been funded by the same Treasury. It's like getting all your money from your parents and then paying them digs.

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2

Sneeky

Thursday, February 23, 2012 at 10:33 AM

So in a best case scenario we would see Westminster agree not to charge the Scottish Police force VAT and we would get savings of £93 million a year (£1.4 Billion over 15 years). __ In a worst case scenario, Westminster applies the VAT and as such we see savings of only £71 million a year (£1.065 Billion over 15 years). __ I would hope that Westminster sees sense!!! __ Afterall, this is not money they are losing as they dont get it a present, it is additional revenue they would be receiving. __ And it would be especially galling since Scotland's police forces are estimated to pay over £3.4million to the UK Exchequer this financial year for Fuel Duty alone, with the Fire Brigade paying another £1 Million a year. __ How can they justify robbing our services of these sums of money especially given that due to a Westminster provision, privatised bus companies operating local bus services receive a rebate of 41 pence per litre on fuel duty via the Bus Service Operators Grant (BSOG) __ The Police and Fire Brigade don't! __ Management of the BSOG in Scotland was devolved to the Scottish Parliament in 2010 but Westminster retained control over who is eligible for the grant and need to give permission to extend it to the emergecy services. __ They already take £4.4 million out of Scotland services through stealth taxes each year, lets hope they dont just see this as an excuse to get more!!!

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1

Hector the Lessor

Thursday, February 23, 2012 at 08:25 AM

Ache, it is just a wee frightener. No government in its right mind would attempt to hit the Scottish Police Force with a VAT bill of 22 million quid annually. It is the kind of woolly London Establishment decision that we have come to know and love so much.

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