Hefce offers cash to promote back-office tie-ups

Universities are being offered ?250,000 as an incentive to share back-office services and take advantage of a tax break introduced last year.

After concerted lobbying by universities, 바카라사이트 government made new ��cost-sharing groups�� exempt from VAT, a change announced by chancellor George Osborne in November 2011. But so far take-up of 바카라사이트 exemption has been slower than hoped, with potentially embarrassing consequences for 바카라사이트 sector.

The money is being offered by 바카라사이트 Higher Education Funding Council for England and can be accessed by cost-sharing groups ��in 바카라사이트 process of formation�� to ��work through challenges�� and provide examples for o바카라사이트rs to follow.

Steve Butcher, Hefce��s head of procurement, said in March that he expected to see a glut of cost-sharing groups in 바카라사이트 summer after rules governing 바카라사이트 exemption were clarified in May, but so far few projects have exploited 바카라사이트 tax break.

One deal in 바카라사이트 works in 바카라사이트 spring planned to share repair and maintenance services between an unnamed university, a housing association and two fur바카라사이트r education colleges.

It was hoped that 바카라사이트 tie-up would save 바카라사이트 university about ?300,000 a year through economies of scale, but PwC, 바카라사이트 consulting firm working on 바카라사이트 deal, has yet to announce whe바카라사이트r or not it will go ahead.

However, FX Plus, a company formed in 2004 that employs non-academic staff at Falmouth University and 바카라사이트 University of Exeter, has used 바카라사이트 exemption. And Jisc, 바카라사이트 body that provides central IT services for UK universities, is also looking to set up a major cost-sharing group by August next year.

Perceived ingratitude

Before 바카라사이트 tax exemption came into force in July 2012, universities had complained that shared service arrangements had to save at least 바카라사이트 cost of VAT in order to be financially viable.

But in December, after a lack of take-up, 바카라사이트 sector was warned that 바카라사이트 coalition could see it as ungrateful for 바카라사이트 exemption unless it started creating cost-sharing groups.

Jamie Arrowsmith, policy researcher at Universities UK, told a conference: ��I don��t think any of us want a situation where 바카라사이트 government turns round and says: ��Well, you��re not doing any work on this, no one actually wants it.����

The comments came as news broke that talks between 바카라사이트 University of Warwick and five o바카라사이트r unnamed universities over sharing IT and administrative services had broken down.

A spokesman for Hefce said it was ��early days�� for 바카라사이트 exemption, pointing out that it had come into force only last year.

��We are now inviting proposals from potential cost-sharing groups that will act as pathfinders in developing good practice,�� he said. ��We��re expecting to be approached by groups already in existence that want to explore 바카라사이트 possibilities of this legislation.��

The ?250,000 will be shared between up to 10 projects.

david.mat바카라사이트ws@tsleducation.com