Scotland’s police and fire services no longer to be liable for VAT

Scotland’s police and fire services will no longer have to pay VAT, the chancellor will confirm today. Philip Hammond will announce in his budget that the two services will become eligible for VAT refunds, bringing their situation into line with the emergency services elsewhere in the UK. However, they will not receive rebates for sums already paid. The Scottish government has said the total VAT bill amounts to £140 million, reimbursement of which would have made a “real difference to frontline services in Scotland”. Scottish Conservative MP Kirstene Hair said: “The decision to centralise the police and fire was the SNP government’s, and they were told about the financial impact of their actions. “As a Scottish Conservative group we have been able to discuss the VAT issue with the Treasury and press the case to fix this.” But SNP MP Kirsty Blackman added: “If the Tories are prepared to right their wrong and allow our police and fire services to reclaim VAT in years ahead, how can they then justify keeping the money which has already been taken?”