A LOCAL MSP is backing calls for the Treasury to look again at exempting the Scottish Police and Scottish Fire and Rescue Service from a continuing VAT anomaly.

Adam Ingram has thrown his weight behind the proposal.

Police Scotland is the only police authority in the UK unable to recover VAT and is liable to an annual cost of around £23 million. The Scottish Fire and Rescue Service is similarly disadvantaged, and is liable for an annual cost of around £10 million.

Commenting Mr Ingram said: ‘’My colleagues in Westminster are again calling on the Chancellor to remove the VAT liability on Scotland’s Police and Fire and Rescue services to end an anomaly - and look again at exempting those services from the burden of VAT with suitable backdating. It is simply unfair as it is.

“George Osborne’s Budget has failed to address the needs of the Scottish and indeed UK economies. This is a Chancellor who in the last parliament failed to meet all of the targets he set himself on the deficit, on borrowing and debt – which looks set to continue. He has failed to address the challenge of productivity and he has continued crude and brutal attacks on the most vulnerable in society with further austerity cuts. At the same time he continues his giveaway proposals for the rich. That commitment is best illustrated by no fewer than thirteen pages of the Finance Bill being devoted to the Tory proposals on Inheritance Tax for the benefit of those with highest value homes.

“The SNP has called for the devolution of the levers of economic power to Holyrood to help grow the economy, create jobs and have proper control of welfare powers - as was promised in the Smith Commission. So far the Tories have failed to live up even to the spirit of Smith.’’