Council coffers boosted by £1.73m

Rochdale Council will receive almost £1.73m from HM Revenue and Customs – because they paid more VAT than necessary between 1990 and 1993.

HMRC accepted that more VAT was paid, meaning the council will get a rebate of £819,023 plus interest of £910,025.

In a bid to get the money back the Council employed Price Waterhouse Cooper on a no-win, no-fee contract. PWC charged the council £195,000.

Pauline Kane, Head of Finance at Rochdale Borough Council said: "Rochdale Borough Council along with other local authorities has taken advantage of an agreement with Price Waterhouse Coopers to do a review of VAT payments to HM Revenue & Customs.

“This resulted in a significant repayment of VAT to the council plus interest.

“The payment of fees was in recognition of this work.”