§ Mr. WelshTo ask the Secretary of State for the Environment what will be the impact on local authority contracted-out services of the restrictions placed by Customs and Excise on the ability of bodies to recover VAT retrospectively; what is the estimated cost to local authorities and if he will make a statement. [2620]
§ Sir Paul BeresfordNo assessment has been made of the estimated cost to local authorities of this proposed change. If approved, the changes limiting the repayment of VAT to three years will apply equally to both the public and private sector. Local authorities should have proper accounting arrangements to recover VAT, whether contracted out to the private sector or performed in-house.