Health secretary Wes Streeting has guaranteed the exemption of VAT on private healthcare will not be removed in the upcoming Budget.
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, the broadcaster reported.
In the UK, most private healthcare services are exempt from VAT. This means patients do not usually pay the tax on treatments.
Last month, Lord Kinnock called for the government to remove the exemption on VAT on private healthcare amid calls to introduce a windfall tax on these services.
The former Labour leader issued his call alongside research from the Good Growth Foundation which showed majority public support for a windfall tax on private healthcare.
Both the Association of British Insurers (ABI) and Independent Health Providers Network (IHPN) raised concerns about Lord Kinnock’s proposal, while advisers Health & Protection spoke to went further – calling it “madness”.
Streeting’s guarantee comes as chancellor Rachel Reeves is facing further tough calls and the growing potential for tax rises to bolster government finances in November’s Budget.
Advisers have applauded the move but told Health & Protection the real risk is from insurance premium tax.
