§ Mr. George HowarthTo ask the Secretary of State for the Home Department (1) how much value added tax has been paid in addition to the published contract prices to the companies running(a) HMP Wolds, (b) HMP Blakenhurst, (c) HMP Doncaster and (d) HMP Buckley Hall for each financial year since the prisons opened; [388]
(2) how much value added tax has been recovered from the companies running: (a) HMP Wolds, (b) HMP Blakenhurst, (c) HMP Doncaster and (d) HMP Buckley Hall for each financial year since the prisons opened. [476]
§ Miss WiddecombeResponsibility for these matters has been delegated to the temporary Director General of the Prison Service, who has been asked to arrange for a reply to be given.
Letter from A. J. Pearson to Mr. George Howarth, dated 23 November 1995:
The Home Secretary has asked me, in the absence of the Director General from the office, to reply to your recent Questions about how much value-added tax has been paid in addition to the published contract prices to the companies running (a) HMP Wolds, (b) HMP Blakenhurst, (c) HMP Doncaster and (d) HMP Buckley Hall for each financial year since the prisons opened and how much has been recovered over the same period.The Prison Service reclaims all VAT paid in respect of these contracts normally at the end of the subsequent quarter. The figures for the four contracted-out prisons are as follows:294W
Establishment and year VAT paid (£) VAT reclaimed (£) HMP Wolds 1991–92 311,582 134,550 1992–93 862,872 788,658 1993–94 994,827 932,949 1994–95 1,254,501 1,183,715 1995–96 556,983 617,627 HMP Blakenhurst 1992–93 463,876 115,969 1993–94 1,499,327 1,400,602 1994–95 1,933,333 1,790,378 1995–96 732,443 1,029,053 HMP Doncaster 1993–94 254,475 0 1994–95 2,038,796 1,679,315 1995–96 966,712 1,137,398 HMP Buckley Hall 1994–95 294,657 145,250 1995–96 717,499 149,407
§ Mr. HowarthTo ask the Secretary of State for the Home Department how the application and collection of value added tax affects the budgets and accounting procedures of(a) Prison Service managed prisons and (b) privately managed prisons; and if he will make a statement. [389]
§ Miss WiddecombeResponsibility for this matter has been delegated to the temporary Director General of the Prison Service, who has been asked to arrange for a reply to be given.
Letter from A. J. Pearson to Mr. George Howarth, dated 23 November 1995:
The Home Secretary has asked me, in the absence of the Director General from the office, to reply to your recent Question about how the application and collection of value-added tax affects the budgets and accounting procedures of (a) Prison Service managed prisons and (b) privately managed prisons.Directly managed prisons pay and can reclaim VAT on a wide range of the services they purchase. Sums included in the supply estimate are appropriated-in-aid towards expenditure under the Vote. Prison Service payments to companies running privately managed prisons include VAT, which is subsequently reclaimed. The Prison Service is not involved in VAT payments by those companies for services they purchase.