Archived press release
Date Published: 05/12/08
AVDC will implement the government’s 2.5 per cent reduction in VAT across its services.
Aylesbury Vale District Council will share the benefits of the government’s VAT cut with businesses, residents and customers.
The Chancellor of the Exchequer announced last week that from 1 December the standard rate of VAT would be reduced from 17.5 per cent to 15 per cent.
Along with other VAT registered companies, AVDC will implement the government’s 2.5 per cent reduction in VAT across its services.
This will mean invoices, service charges and electronic payments collected by the council will be reduced where practicable. The reduction is equivalent to a saving of 2p in every £1.
The council must levy VAT at various rates on a wide range of goods and services it provides. There will be no changes to the reduced rate or for items currently classed as zero rated, exempt or outside the scope of VAT, which applies to many council services.
Among council services that do attract VAT and will benefit from the reduction are school holiday activities, building control inspections, community centre bookings and shows at Aylesbury Civic Centre where tickets are not yet on sale.
Councillor Margaret Morgan-Owen, Cabinet Member for Resources, said: “From our point of view we want to look at reducing charges where practical. The reduction in VAT may not in itself generate a lot of cash for individuals but the cumulative effect could be more significant for the community as a whole. We are happy to make our contribution and will introduce the new charges as soon as possible.”