VAT exemption on shared services

After reviewing the legal situation, the government has decided that the VAT exemption for universities on shared services can be implemented with immediate effect.

Earlier, George Osborne had announced it as a measure to be included in the 2012 Finance Bill. 

This is further evidence of a piecemeal approach to higher education change but the speed of implementation is likely designed to ‘do right by’ Malcolm Gillies at London Met and allow him to rush through cost-cutting measures prior to 2012/13 entry.  It makes his low fee, no frill strategy more viable and threatens more jobs there.

Simultaneously, Nesta (National Endowment for Science, Technology and the Arts) has now been privatised . No longer a quango it will be an independent charity.