We are revising the Green Book – the basis on which the Government assesses the costs and benefits of different policies – to fully take account of their social impact. We are developing a new test for all policies – that they should demonstrate not just how they help reduce public spending and cut regulation and bureaucracy – but how they create social value too.
We're hearing a lot about the Government encouraging community groups and social enterprises to get involved in the delivery of public services and that this will remove bureaucracy and waste. And David Cameron was open about not having all the answers but wanting to try things out.
- HM Revenues and Customs will require Pay As You Earn and National Insurance to be collected and paid over in respect of any employees (and as the owner of a business with just one employee I can assure you that there is plenty of electronic form filling required);
- VAT rules will apply (and this could cause an increase in costs because, for instance, local authority schools can recover the VAT paid on their supplies and City Academies can't);
- having employees will mean that health and safety and working time legislation applies so there will be risk assessments and so on to complete as well as keeping adequate records about employees;
- equalities legislation (because we can't have the local community running facilities that are discriminating against one group or another); and
- if the organisation chooses to be a charitable one then the requirements of the Charity Commission will apply in terms of annual returns and publishing information