Purpose

The Council’s leisure
contract was recently re-procured on a ‘contract for
services’ basis. A recent HMRC VAT ruling identifies that
leisure services for local authorities can now be considered
‘non business’. The ruling means that local authorities
do not have to charge output VAT on services (e.g. gym memberships)
and they can also recover all input VAT on revenue or capital costs
incurred in relation to the services. The Cabinet will be asked to
approve a change to the contract to an Agency model arrangement,
which would result in significant income for the
Council.

Content

Cabinet resolved to:
 
(i)  Agree that the
Council proceeds with the variation to the leisure contract with
SLM Ltd (Company no. 02204085) to move to an Agency Model
arrangement on the terms set out in the report; and
 
(ii)  Delegate authority
to the Strategic Director, Inclusive Growth and Place, in
consultation with the Leader, the Strategic Director, Resources,
and the Head of Legal, to vary the existing contract to an Agency
Model arrangement and agree and enter into all necessary and/or
ancillary agreements to fully implement and effect the
proposals.