Summary
This is the first case concerning the new Cost Saving exemption and it emphasises the importance of exact reimbursement in order to take advantage of the exemption.
Background
This was an appeal concerning the new cost saving exemption and concerns a repayment claim for £102,216.77. The Appellant claimed that this was incorrectly charged in respect of services rendered by it to the colleges of further and higher education which formed it.
Following a local government reorganisation and the demise of Strathclyde Region in 1996 it became necessary for the colleges in the region, numbering twenty two, to provide for themselves the service and expertise which Strathclyde Region had previously given in seeking sources of funds.
There was a limited number of persons with the necessary expertise to render this service. The natural solution was for the
