A first aid and trauma training specialist says his firm's ability to turn a profit is being sabotaged by direct competition from Gloucestershire County Council.

Ben Limbrick, 44, a former Royal Marine, established First Aid and Trauma Training Ltd (FATT) 13 years ago and, based at the Glenmore Centre in Quedgeley, runs professional courses for clients throughout Gloucestershire and the West Country.

Ben told Punchline-Gloucester.com that the sector he operates in has always been competitive, but that he'd been alerted to rivalry in the form of competition for business from Shire Hall.

He said: "What alarmed me was that a client called us, saying they wanted to come back for a further request for staff training, but that they had seen how Gloucestershire County Council also ran training along the same lines and significantly cheaper than what we can offer – not least because there was no apparent VAT charge."

He added: "It means we are left having to compete against a council which doesn't have to pay for its training rooms, as they are effectively paid by us, in a roundabout way, through the business rates we pay them. They also make similar cost savings on kit and equipment. If we see another business doing what we do but more price-effectively, we recognise that as good effort because everyone has to make a living, but this is simply an unfair advantage."

Under the terms of HM Revenue and Customs' VAT notice 749, a local authority is exempt from adding the tax when billing a client which is not a private business, a definition into which many of FATT's clients fall. Additionaly, VAT notice 701/30 exempts local authorities from charging VAT in a vocational training setting.

Ben explained: "So if we are organising a training group and come out with a price of £85 per person, inclusive of certification and the cost of inspectors, VAT is applicable to that, which pushes the price to more than £100. By contrast, they quoted a client of ours £65 per person, with no VAT to be added.

"Deducted from our costs on a per-person fee, we need to pay £8.50 per certificate, plus equipment use, costed at £10. Additionally, the combined cost of hired professional instructors can run to another £250 per day. Altogether, it's a tough balance.

"Ironically, because I am paying business rates to Shire Hall, which have significantly gone up on last year, and with the way that Shire Hall now chases our customers, I feel like I am working for them so that they can then undercut me. It hardly feels fair?"

A spokesperson for Gloucestershire County Council said: "Our Adult Education Service needs to meet the training needs of local businesses and other organisations, as well as residents and local communities."

While the pursuit of this aim is funded by Department of Education (DfE) for some of its activities, the council said it also needs to secure revenue from its courses and services: "This is not-for-profit and any money made is reinvested back to provide a high quality service to our residents."

Additionally, first aid courses from Shire Hall are delivered through its adult education service and, Shire Hall said, "are being delivered in direct response to the needs of local individuals and organisations."

They added: "We are aware of other training providers delivering similar courses and that it is a competitive market, it does not set out to undercut other training providers."