Edenred procurement ruling upheld by Court of Appeal

31 Mar 2015

Edenred (Group UK) Limited v Her Majesty’s Treasury and others [2015] EWCA Civ 326

The Court of Appeal has today handed down judgment in the public procurement case of Edenred (Group UK) Limited v Her Majesty’s Treasury and others upholding Andrews J’s decision in favour of the Government (read the first instance decision here).

This was the appeal in an expedited case on whether the way in which the new Government policy of Tax-Free Childcare is proposed to be delivered, by HMRC working with NS&I, is lawful under domestic and EU public procurement legislation.

The Chancellor, with whom Underhill LJ and King LJ concurred, held that a proposed memorandum of understanding between HMRC and NS&I was not a “public services contract” and that the work that NS&I will require under its outsourcing contract with Atos (the contractor who had previously won a tender to provide NS&I’s back office functions) did not amount to a material variation of the Atos contract. The Court of Appeal therefore held there was no breach of the Public Contracts Regulations 2006 or Article 56 TFEU.

Philip Moser QC, Ewan West and Anneliese Blackwood appeared on behalf of Her Majesty’s Treasury, Her Majesty’s Revenue and Customs and NS&I.

Please click to read the Edenred v HMTreasury Court of Appeal judgment.