Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, whether contracted-out services VAT refunds are planned to be extended to the successful bidder of the Defence Fire and Rescue project.

The VAT refund mechanism in section 41 of the VAT Act 1994 applies to government departments and certain NHS authorities. The mechanism does not apply to companies which are in business.

The government keeps the list of services entitled to refunds under review to ensure that they work for government departments and the NHS.