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National Outsourcing Association approve of new VAT exemptions
Kelly Hallard, CEO, said of the proposed changes: "We applaud this common sense initiative from the government. The coalition has already invested £88 billion into outsourcing; they have done so because they know it works. The government clearly wishes to expand the scope of its outsourcing in the future."
Hallard continued: “The introduction of VAT refunds for suppliers will enable much more of the public sector to take advantage of the cost savings and service improvements that outsourcing can provide. As a result, we expect this change to bring significant growth to the outsourcing industry.”
However, Hallard warned that more must be done to keep outsourcing arrangements working effectively: "Effective outsourcing is about more than just numbers and the public sector needs to get a lot better at managing outsourcing arrangements long-term, in order to drive real value for the public purse."
The VAT changes come into effect on the 1 April this year.
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