VAT frozen for University of Edinburgh students

Edinburgh University Student Association (EUSA) has announced that the rise in value-added tax (VAT) will not be handed on to students shopping and drinking at union outlets.

Following a temporary 2.5 percent reduction on non-food items in 2009 designed to spur the economy, the government has restored VAT to its previous level of 17.5 percent.

However, EUSA has pledged to keep VAT at 15 percent in union outlets 'for as long as possible'.

Vice President of Services James Wallace told The Journal: “Bar prices will remain the same for as long as possible despite the increase in VAT, in a continued effort to ensure value is provided to students.

“This is in effect the second reduction in bar prices over the last year.”

After announcing the news on Twitter, Mr Wallace warned: “We will take the hit on profits for now, but it may not be sustainable for long as it is obviously costing us more.”

The news hasn't been universally welcomed. Student Luke Blaney replied via Twitter, saying: “When you say ‘we will take the hit’, do you mean EUSA's other important services will take the hit to help get students drunk?”

Mr Wallace's response assured Mr Blaney that this was not the case: “No of course not. Just the bar GP (gross profit) %, we hope the turnover will continue to increase as we offer value for money.”

Mr Wallace also told The Journal: “Despite the reduction of prices last semester, EUSA bars saw a continued increase in profits due to the larger number of students using the facilities.

“The free entry to Big Cheese before 10pm introduced last semester has achieved its aim of boosting revenues at Potterow as students arrive earlier, enabling the night to continue to grow in strength.”

EUSA have used the occasion to announce further cuts in the price of some services; Mr Wallace said: “In addition, EUSA shops have begun the process of completely reviewing prices and the price of pool has been halved to 50p.”

Heriot-Watt University Students' Association has confirmed that union bar prices will also remain the same, as the VAT holiday savings were never passed on to students.

President Simon Eltringham told The Journal: “We only reduced the VAT on stationery items in the student shop as it was felt this was most beneficial to students.

“We have not maintained the reduction but this will be reviewed by the commercial services committee.”

Mr Wallace supported the continued VAT freeze, saying: “Our aim is to provide students with the best value, service and facilities possible.

“Our pricing strategy aims to make enough money to continue to reinvest in our buildings while ensuring that students receive the best value possible when using our services."