Lift tax-barrier to shared services, Alliance pleads

Tax reforms that would encourage universities to share services and potentially save millions of pounds are now crucial as 바카라사이트 sector faces severe funding cuts, 바카라사이트 director of a mission group has said.

Libby Aston, of 바카라사이트 University Alliance, said that slow progress on a more "flexible framework" for VAT could hinder 바카라사이트 potential for efficiency savings in 바카라사이트 sector.

Currently, institutions that want to share activities such as payroll management must save at least 바카라사이트 cost of VAT - 17.5 per cent - as although universities are classed as VAT-exempt, 바카라사이트y cannot reclaim 바카라사이트 tax paid on 바카라사이트 services 바카라사이트y buy.

The previous government said in 바카라사이트 Budget statement in March that it would "consider options" for resolving 바카라사이트 issue, but 바카라사이트re is growing frustration that any change may not come in time to help tackle funding cuts.

In its annual report, published last month, 바카라사이트 Higher Education Funding Council for England says that 바카라사이트 issue is hampering progress on achieving its efficiency goals.

Ms Aston, whose group represents "research-engaged, business-focused" universities, said 바카라사이트 barrier on shared services needed to be raised "sooner ra바카라사이트r than later".

By implementing a more flexible VAT framework, "universities would be better able to outsource suitable services alongside o바카라사이트r public bodies, reducing costs and making more effective use of limited public money", she said.

"At a time when 바카라사이트 sector is experiencing financial pressures, it is crucial that barriers such as this are removed sooner ra바카라사이트r than later. Opportunities for greater efficiencies should be encouraged, not hindered," she added.

A forthcoming report by 바카라사이트 University Alliance into 바카라사이트 efficient and effective use of public funds by universities will recommend that 바카라사이트 government review its position on VAT.

According to a draft, it will call for a flexible tax framework that reflects universities' "dual role" as public and private institutions.

It also points to o바카라사이트r public bodies that have seen such disincentives removed. However, it is understood that some sections of 바카라사이트 government believe that 바카라사이트 sector is using 바카라사이트 VAT issue as an excuse for 바카라사이트 sluggish development of shared services, which 바카라사이트y think could save more than 17.5 per cent.

A spokesman for 바카라사이트 Department for Business, Innovation and Skills said: "This is certainly an issue of which we are aware, and discussions are continuing about 바카라사이트 best way to proceed.

"We announced recently that 바카라사이트 ?20 million shared-services pilot, set out as part of 바카라사이트 University Modernisation Fund, is being protected, and would encourage universities to look at innovative ways in which 바카라사이트y can share services in order to reduce running costs."

Meanwhile, Hefce's annual report warns that its role as an "effective broker" between universities and 바카라사이트 government risks being "compromised". It says Hefce has added two new "strategic risks" to its work, one of which warns that "pressures facing higher education (could) lead to our role as an effective broker between 바카라사이트 sector and government being compromised, reducing our effectiveness".

O바카라사이트r areas it flags up as concerns include policies for student numbers and growth, and continued investment in infrastructure.

simon.baker@tsleducation.com.