It was unfortunate timing that Weinstock's Supporting Children and Young People Group had suddenly found 20m to reverse cuts in the Children's Fund (YPN, 18-24 February, p2) while foisting these reductions - or financial restructuring as Weinstock prefers to call them - on Connexions (see p2).
From April, partnerships can no longer reclaim all their VAT. During Connexions' start-up period it could claim back 100 per cent of VAT from the Inland Revenue. The Department for Education and Skills (DfES) hoped to continue this, but partnerships will now only get 30 per cent exemption.
The DfES claims partnerships always knew their tax support was short term. But Connexions chief executives were taken by surprise and feel let down. Some partnerships are losing six-figure sums and have a short time to implement the cuts. It obviously wasn't in their minds when they drew up 2004-05 budgets.
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