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Police chief calls for UK Treasury VAT rule change

Sir Stephen House
Sir Stephen House

Scotland’s chief constable has urged SNP MPs to use their influence at Westminster to force a change on VAT policy which will cost the force £24million this year.

Sir Stephen House said it was “unfair” of the UK Treasury not to allow the service to recover the costs – a privilege that was afforded to the eight legacy forces.

The National Crime Agency, Northern Ireland’s single service and forces in England and Wales are all exempt from paying VAT.

Justice Secretary Michael Matheson has said he has already had discussions with his party colleagues at Westminster, who hold 56 of Scotland’s 59 seats, and hoped the issue would move up the political agenda.

Sir Stephen raised the issue at the Association of Scottish Police Superintendents annual conference on Wednesday.

“Why are we the only police service in the United Kingdom that I’m aware of that pays VAT?” he asked.

“It simply isn’t correct, it’s not right, it’s unfair and it shouldn’t be allowed to continue.”

Highland Labour MSP Dave Stewart has urged the Scottish Government to stop under-funding Police Scotland.

He has laid a motion at Holyrood to that effect after it emerged the force still needed to make savings of £10.5 million.

Mr Stewart said the police had already found £46.5million of the £57.5million required to break even in 2015-2016.

“If the force cannot save money by culling support staff anymore and if the chief constable cannot reduce officer numbers, then the only place left for him to go is the infrastructure, equipment and supporting facilities,” he added.

“We will end up with the bones with not very much meat on them”.

A spokesman for Police Scotland said the force was on-track to meet the long-term reform efficiency target and the government had provided £200million in funding over three years.

“Great progress has been made towards the police reform savings target of £1.1billion by 2025-26, with around £880million of recurring savings already delivered,” he added.

Police Scotland has already identified £46.5million of the £57.5million needed in 2015-16 and the £11million of unidentified savings represent just 1% of policing’s annual budget for around £1billion.

“The government is continuing to make the case to HM Treasury that the Scottish Police Authority should be able to recover VAT.”