With this it will be convenient to discuss:
New clause 20—Review of operation of VAT refund schemes in Scotland—
‘(1) The Treasury shall, within six months of the day on which this Act is passed, publish and lay before the House of Commons a review of the application of VAT refund schemes for businesses in Scotland.
(2) The review must include an analysis of the impact of the qualifying criteria for the VAT refund schemes—
(a) in Section 33 of the VAT Act 1994, and
(b) for Government Departments and the NHS,
on the level of VAT payable by Police Scotland and by the Scottish Fire and Rescue Service.”
Following the amalgamation of the (formerly regional) Scottish fire and rescue services and Scottish police forces into a single fire service (the Scottish Fire and Rescue Service) and a single police force (Police Scotland) respectively, they are no longer eligible for VAT exemptions under the VAT refund schemes mentioned. This amendment requires the Treasury to carry out and publish a review of the schemes in Scotland, and in particular in relation to the level of VAT payable by Police Scotland and the Scottish Fire and Rescue Service.