20 March 2015
The Business Services Association (BSA) has hailed the Budget announcement of an extension to VAT relief for shared services as a "big win".
Chancellor George Osborne has said that the relief will be applied to non-departmental public bodies.
Mark Fox, chief executive of the BSA, said: "At the moment the private sector provider has to factor in an additional 20 per cent VAT when they pitch the cost of a contract bid. The change is a significant boost to the industry.
"This opens the way for public sector bodies to explore innovative ways to deliver services, creating a level playing field with private sector providers.
"It is a step in the right direction and we will continue pursuing its extension to all publicly funded bodies."