Streeting rules out VAT on private healthcare

"Streeting told the BBC "it's not happening" and repeated that answer when asked if he could guarantee VAT would not be levied on private healthcare. In the UK, most private healthcare services are exempt from VAT, meaning patients don't usually pay the tax on treatments. But Chancellor Rachel Reeves has faced repeated questions about the prospect of tax rises, including VAT, when she delivers her budget in November."

"Economists have said taxes will have to go up in the autumn Budget if the chancellor is to meet her self-imposed rules on borrowing to fund public services. In her Labour conference speech on Monday, Reeves said the government was facing difficult choices and promised she would not take risks with the public finances. The chancellor pledged to keep "taxes, inflation and interest rates as low as possible"."

"In an interview ahead of her conference speech, Reeves was asked if VAT could rise and she said: "The manifesto commitments stand." That form of words has been echoed by senior ministers at Labour's conference, including Prime Minister Sir Keir Starmer. But when pressed over whether she would have to put up taxes, Reeves said "the world has changed" in the last year - pointing to wars in Europe and the Middle East, US tariffs and the global cost of borrowing."

Wes Streeting ruled out the UK government imposing VAT on private healthcare in the upcoming autumn Budget and said it was "not happening." Most private healthcare services are currently VAT-exempt, so patients generally do not pay the tax on treatments. Economists warn taxes may need to rise in the autumn Budget for the chancellor to meet self-imposed borrowing rules to fund public services. Chancellor Rachel Reeves reaffirmed manifesto commitments not to raise National Insurance, income tax rates, or VAT, while acknowledging international events and higher global borrowing costs have made fiscal choices harder.

Read at www.bbc.com