HMRC internal manual

VAT Government and Public Bodies

VATGPB6800 - Local government partnership programmes: local authority joint committees and shared services

Often two or more local authorities will join together in what are called ‘shared services’ arrangements to exploit economies of scale. Shared services may cover front line or back office services. Often such arrangements are referred to as ‘joint committees’ but it is important to ascertain whether they are actually constituted under sections 101 and 102(1) of the Local Government Act 1972. If so the principles applicable to joint committees apply but if not ‘shared services’ are likely to be little more than mutually agreed contractual arrangements involving inter-authority supplies