Can an Agency Agreement Model protect public sector services?

In the latest issue of Health Club Management, Lisa Forsyth, Managing Director of Max Associates, discusses whether an Agency Agreement Model can protect public sector services.

Debating on the HCM forum, Lisa highlights that changes to UK government (HMRC) VAT rules in March 2023 have fundamentally the landscape for local authorities and not-for-profit leisure operators.

These changes have made the Agency Agreement Model more relevant, which could unlock financial savings. The model allows operators to act as agents for councils, making VAT on expenditure recoverable, potentially saving up to £50-£80 million annually across the sector. This model has already been adopted by some councils, with larger operators leading the way.

Lisa goes on to suggest however, that smaller councils and operators face challenges in adopting this model, requiring additional support and guidance.

Collaboration and knowledge-sharing between stakeholders are crucial for maximising the benefits and ensuring the model’s widespread success.

Read the full article here!