Millions rebate will help ease impact of Covid

The landmark case is estimated to be worth between £50m and £70m in refunds for councils.

While an exact figure is yet to be determined, Mid Ulster Council estimates it will receive between £3m and £4m.

It’s a refund which is much needed by the council as its finance streams have been stretched dealing with the impact of Covid-19 since March.

The case centred on whether VAT should be payable on charges paid by members of the public for access to sports, recreation and leisure facilities provided by councils.

Sinn Féin Councillor Cathal Mallaghan, chair of Mid Ulster Council, called the ruling a “mammoth victory”.

He said: “This is a mammoth victory from which each and every council here, and their ratepayers, will benefit substantially.

“Given the significant financial pressures which we all face as a result of the pandemic, the timing could not be any better.”

Councillor Mallaghan praised the work of Mid Ulster’s finance director, JJ Tohill.

“While our sector gains as a whole, this case would not even have been taken, let alone succeeded without Mid Ulster’s Finance Director, JJ Tohill.

“JJ’s expertise, hard work and dogged determination over a sustained period, together with a brilliant legal team, has brought us all to this landmark win.”

Local councillor Malachy Quinn, who is also chair of the SDLP Association of Councillors, welcomed the successful legal challenge.

He said that a significant rebate should now be paid to the 11 councils and will ease pressures caused by the Covid-19 crisis.

He said: “Mid Ulster Council has been engaged in a legal battle against unfair VAT charges for over a decade now.

“The successful result will now see local councils across Northern Ireland eligible for significant rebates for charges incurred against the public using leisure facilities operated by local government.

“This is a big win for local government and it couldn’t come at a more critical time for council finances.

“The Covid-19 crisis has significantly reduced revenue streams which has had a knock-on impact on public services.”

Councillor Quinn said the rebates will go some way to ease pressure on key public facing services run by our councils.

In May the Council moved to furlough 350 staff due to “severe financial losses” of “approximately £620,000 per month” as a result of the Covid-19 pandemic.

--- A message from the Editor:

Thank you for reading this story on our website. While I have your attention, I also have an important request to make of you.

In order for us to continue to provide high quality and trusted local news on this free-to-read site, I am asking you to also please purchase a copy of our newspaper whenever you are able to do so.

Our journalists are highly trained and our content is independently regulated by IPSO to some of the most rigorous standards in the world. But being your eyes and ears comes at a price. So we need your support more than ever to buy our newspapers during this crisis.

With the coronavirus lockdown having a major impact on many of our local valued advertisers - and consequently the advertising that we receive - we are more reliant than ever on you helping us to provide you with news and information by buying a copy of our newspaper when you can safely.

You can also enjoy unlimited access to the best news from across Northern Ireland and the UK by subscribing to newsletter.co.uk

With a digital subscription, you can read more than five articles, see fewer ads, enjoy faster load times, and get access to exclusive newsletters and content. Visit https://www.newsletter.co.uk/subscriptions now to sign up.

Thank you