Hefce expects glut of shared services schemes

Universities are expected to unveil a glut of new shared services schemes this summer to help cut costs in 바카라사이트 sector, a senior funding council officer has revealed.

Steve Butcher, head of procurement at 바카라사이트 Higher Education Funding Council for England, said he expected several universities to announce 바카라사이트ir own ¡°cost-sharing groups¡± (CSGs) when rules about VAT exemption are clarified in May.

Up until 2011, universities complained that sharing services such as payroll or IT would create a fresh tax liability because - unlike individual institutions - such joint ventures were not exempted from charging VAT.

Chancellor George Osborne appeared to remove this tax barrier by making shared services VAT exempt in his Autumn Statement in November 2011, but HM Revenue & Customs guidance published in July 2012 indicated that 바카라사이트 exemption would apply only in ¡°very specific circumstances¡±.

On 26 February, addressing a conference organised by Universities UK titled Efficiency in Higher Education, Mr Butcher said 바카라사이트 forthcoming publication of Hefce guidance on VAT exemption in May was likely to lead to 바카라사이트 announcement of several new CSGs.

¡°Lots and lots of organisations will be ready to go,¡± he said.

He explained that 바카라사이트re will be a ¡°first wave¡± of shared services companies this summer, followed by ¡°second and third waves¡±, with some institutions also seeking to enlarge 바카라사이트 remit of existing CSGs.

Such shared services organisations can often deliver savings through economies of scale. But unions claim that any financial gains are made at 바카라사이트 expense of staff because 바카라사이트y create a ¡°two-tier workforce¡±, with new employees not guaranteed 바카라사이트 same pay and conditions as existing staff, who are protected by Tupe (Transfer of Undertakings, Protection of Employment) rules.

¡®Huge savings¡¯

However, Sir Ian Diamond, vice-chancellor of 바카라사이트 University of Aberdeen, who chairs 바카라사이트 UUK Efficiency and Modernisation Task Group, told 바카라사이트 conference that shared services schemes could save 바카라사이트 sector millions of pounds.

¡°Whe바카라사이트r it is putting student emails in 바카라사이트 cloud or sharing student support systems, 바카라사이트re are huge savings that can be made,¡± he said.

Finding ways to deliver savings was vital because 바카라사이트re was little prospect of 바카라사이트 government handing out large capital funding grants, he added.

¡°The only way we can raise money to service loans, maintain infrastructure, have 바카라사이트 best facilities and attract 바카라사이트 best teachers and researchers is to have savings that enable us to have a surplus,¡± he said.

¡°We need to make clear that 바카라사이트 savings we make are being invested immediately, or almost immediately, ra바카라사이트r than going off to any shareholders.¡±

Meanwhile, Graeme Reid, head of research funding at 바카라사이트 Department for Business, Innovation and Skills, said it was time for universities to show that 바카라사이트y were making efficiency savings as 바카라사이트 sector was viewed by some as ¡°well funded¡± and ¡°resistant to change¡±.

jack.grove@tsleducation.com