Rachel Reeves must slap VAT on private healthcare, warns ex-Labour leader Neil Kinnock
Rachel Reeves should slap VAT on private healthcare to raise billions for the NHS, ex-Labour leader Lord Neil Kinnock has said.
The prominent politician said Rachel Reeves should remove the VAT exemption in the same way she did with private schools in this autumn's Budget. He said the move would raise 'vital funding' for public services and be 'widely supported' by the public.
It comes as .
The Chancellor is battling to plug a hole in the public finances following recent Government U-turns on cuts to disability benefits and the winter fuel allowance. Labour is constrained by how it can raise money after pledging in the election not to hike income tax, national insurance or VAT.
But removing a VAT exemption on private healthcare could provide an opportunity for Ms Reeves to raise cash without breaking her election promise.
Lord Kinnock told the i newspaper: 'Introducing VAT on private health provision could provide vital funding for the NHS and social care.
'After 14 years of underinvestment, many people are turning to private healthcare not out of choice, but because they cannot afford to wait. This has increasingly led to unequal access to care. Ending the VAT exemption to generate much-needed revenue is a reasonable and widely supported step.'
Analysis by the Good Growth Foundation (GGF) think tank, which supports the policy, found more than £2billion could be raised by applying 20% VAT to private acute healthcare. This would excluding putting VAT on the use of private hospitals.
Private acute healthcare covers short-term care and treatment for illnesses or injuries but does not include things like optician and dental appointments. The GGF said the area of care was worth £12.4bn in 2024.
Some 55% of Brits support a 'windfall tax' on private healthcare firms, with 17% against it, according to a poll of 2,054 adults by the think tank in June.
Praful Nargund, GGF's founder, said: 'We are sleepwalking into a two-tier healthcare system, and we have to back our NHS.
'The NHS is in a dire state: from 8am GP scrambles to months-long waits for cancer care, this is simply not good enough. People are being forced to go private for care they should get for free.
'That's not a system in need of tweaks – it's a system on the brink, in need of major reform. A windfall tax on private healthcare would be a bold, fair first step to fund the innovation and change we need in the NHS.'
During the election, Labour pledged to scrap the VAT exemption enjoyed by private schools to pay for 6,500 new teachers for state schools. From January this year, all private education and boarding services became subject to VAT at the standard rate of 20%.
The Department for Education says ending tax breaks on private schools will help raise around £1.8billion per year by the 2029/30 financial year.
Education Secretary Bridget Phillipson has faced fury over the policy from right-wing parties. Critics claim it will put pressure on state schools as they will have to accept kids from families who can no longer afford private schools, if their provider chooses to hike fees to pay for the VAT uplift.
In December, Ms Phillipson said she had received abuse over the policy but added: 'I'll wear that as a badge of honour if it means that we drive up standards in state schools and invest in better life chances for our children.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South Wales Argus
3 hours ago
- South Wales Argus
Concern over weight gain after ‘skinny jabs'
Research shows that many people regain weight after stopping treatment if they are not supported, the National Institute for Health and Care Excellence (Nice) said. The health watchdog said that people coming off the drugs should be offered 'structured advice and follow-up support' to help prevent weight gain. The guidance is for people who are offered the treatments through the NHS. An estimated 1.5 million people are taking weight loss jabs in the UK, but the vast majority are paying for them privately so will not be eligible for NHS support after they have finished their treatment. Around 240,000 people with 'greatest need' are expected to receive Mounjaro, also known as tirzepatide, through the NHS over the next three years. The new 'quality standard' from Nice says that NHS patients should be monitored for at least a year after they complete treatment, and extra support should be offered if needed. It emphasises building 'long-term behavioural habits, use self-monitoring tools, and draw on wider support – from online communities to family-led interventions and local activities'. This standard, a type of guidance for the health services in England and Wales, sets out expectations for health providers including how they should support patients. 'Successful weight management doesn't end when medication stops or when someone completes a behavioural programme,' said Professor Jonathan Benger, deputy chief executive and chief medical officer at Nice. 'We know that the transition period after treatment is crucial, and people need structured support to maintain the positive changes they've made. 'This new standard makes sure services provide that vital continuity of care, and it supports the NHS 10 Year Plan to shift from a 'sickness service' to a genuine health service focused on prevention.' Dr Rebecca Payne, chair of Nice's Quality Standards Advisory Committee, added: 'Weight management is a long-term journey, not a short-term fix. Little swaps can make tasty, healthy changes. For lots of tips and support to eat better visit: — NHS Blackpool Teaching Hospitals 💙🌈 (@BlackpoolHosp) April 12, 2025 'The evidence is clear that advice and support for maintaining weight after stopping medicines or completing behavioural interventions can help prevent weight regain and enable people to experience lasting benefits. 'We've seen excellent examples of services that already provide comprehensive discharge planning and ongoing support. 'This quality standard will help ensure all healthcare providers adopt these best practices, giving every person the best chance of maintaining their weight management success over the long term. 'This standard ensures healthcare services are equipped to provide that essential ongoing support.' Commenting, Henry Gregg, chief executive of the National Pharmacy Association, said: 'Pharmacies take their responsibilities seriously to provide full wrap around support to patients trying to achieve a healthy weight. 'We know that although medication can be effective in speeding up weight loss in some people, it is not a silver bullet and patients need to make long term lifestyle changes to make their weight loss sustainable. 'The current NHS roll out of weight loss treatment is very small, with only a handful of patients receiving it and it will continue to be the case that the vast majority of eligible patients will be seen by their pharmacy.' Professor Kamila Hawthorne, chairwoman of the Royal College of GPs, said: 'There is no one-size-fits-all approach to tackling obesity – what works for one patient will likely not work for another and, as with any medication, weight-loss drugs do not come without risk. 'It's also the case that patients will likely need support to sustain their weight loss once they stop taking the medication. As such, this is important and sensible guidance from Nice. 'As a college, we've been clear that whilst weight loss medications have significant potential benefits for patients who are struggling to lose weight, they mustn't be seen as a 'silver bullet' and ensuring access to sufficient 'wraparound' services – particularly for when patients come off their medication – will be key to optimal health outcomes.'
Leader Live
3 hours ago
- Leader Live
Concern over weight gain after ‘skinny jabs'
Research shows that many people regain weight after stopping treatment if they are not supported, the National Institute for Health and Care Excellence (Nice) said. The health watchdog said that people coming off the drugs should be offered 'structured advice and follow-up support' to help prevent weight gain. The guidance is for people who are offered the treatments through the NHS. An estimated 1.5 million people are taking weight loss jabs in the UK, but the vast majority are paying for them privately so will not be eligible for NHS support after they have finished their treatment. Around 240,000 people with 'greatest need' are expected to receive Mounjaro, also known as tirzepatide, through the NHS over the next three years. The new 'quality standard' from Nice says that NHS patients should be monitored for at least a year after they complete treatment, and extra support should be offered if needed. It emphasises building 'long-term behavioural habits, use self-monitoring tools, and draw on wider support – from online communities to family-led interventions and local activities'. This standard, a type of guidance for the health services in England and Wales, sets out expectations for health providers including how they should support patients. 'Successful weight management doesn't end when medication stops or when someone completes a behavioural programme,' said Professor Jonathan Benger, deputy chief executive and chief medical officer at Nice. 'We know that the transition period after treatment is crucial, and people need structured support to maintain the positive changes they've made. 'This new standard makes sure services provide that vital continuity of care, and it supports the NHS 10 Year Plan to shift from a 'sickness service' to a genuine health service focused on prevention.' Dr Rebecca Payne, chair of Nice's Quality Standards Advisory Committee, added: 'Weight management is a long-term journey, not a short-term fix. Little swaps can make tasty, healthy changes. For lots of tips and support to eat better visit: — NHS Blackpool Teaching Hospitals 💙🌈 (@BlackpoolHosp) April 12, 2025 'The evidence is clear that advice and support for maintaining weight after stopping medicines or completing behavioural interventions can help prevent weight regain and enable people to experience lasting benefits. 'We've seen excellent examples of services that already provide comprehensive discharge planning and ongoing support. 'This quality standard will help ensure all healthcare providers adopt these best practices, giving every person the best chance of maintaining their weight management success over the long term. 'This standard ensures healthcare services are equipped to provide that essential ongoing support.' Commenting, Henry Gregg, chief executive of the National Pharmacy Association, said: 'Pharmacies take their responsibilities seriously to provide full wrap around support to patients trying to achieve a healthy weight. 'We know that although medication can be effective in speeding up weight loss in some people, it is not a silver bullet and patients need to make long term lifestyle changes to make their weight loss sustainable. 'The current NHS roll out of weight loss treatment is very small, with only a handful of patients receiving it and it will continue to be the case that the vast majority of eligible patients will be seen by their pharmacy.' Professor Kamila Hawthorne, chairwoman of the Royal College of GPs, said: 'There is no one-size-fits-all approach to tackling obesity – what works for one patient will likely not work for another and, as with any medication, weight-loss drugs do not come without risk. 'It's also the case that patients will likely need support to sustain their weight loss once they stop taking the medication. As such, this is important and sensible guidance from Nice. 'As a college, we've been clear that whilst weight loss medications have significant potential benefits for patients who are struggling to lose weight, they mustn't be seen as a 'silver bullet' and ensuring access to sufficient 'wraparound' services – particularly for when patients come off their medication – will be key to optimal health outcomes.'
Powys County Times
3 hours ago
- Powys County Times
Concern over weight gain after ‘skinny jabs'
Health chiefs have raised concerns about people regaining weight after using Wegovy and Mounjaro, saying that patients coming off the drugs should be given support to help prevent them piling on the pounds again. Research shows that many people regain weight after stopping treatment if they are not supported, the National Institute for Health and Care Excellence (Nice) said. The health watchdog said that people coming off the drugs should be offered 'structured advice and follow-up support' to help prevent weight gain. The guidance is for people who are offered the treatments through the NHS. An estimated 1.5 million people are taking weight loss jabs in the UK, but the vast majority are paying for them privately so will not be eligible for NHS support after they have finished their treatment. Around 240,000 people with 'greatest need' are expected to receive Mounjaro, also known as tirzepatide, through the NHS over the next three years. The new 'quality standard' from Nice says that NHS patients should be monitored for at least a year after they complete treatment, and extra support should be offered if needed. It emphasises building 'long-term behavioural habits, use self-monitoring tools, and draw on wider support – from online communities to family-led interventions and local activities'. This standard, a type of guidance for the health services in England and Wales, sets out expectations for health providers including how they should support patients. 'Successful weight management doesn't end when medication stops or when someone completes a behavioural programme,' said Professor Jonathan Benger, deputy chief executive and chief medical officer at Nice. 'We know that the transition period after treatment is crucial, and people need structured support to maintain the positive changes they've made. 'This new standard makes sure services provide that vital continuity of care, and it supports the NHS 10 Year Plan to shift from a 'sickness service' to a genuine health service focused on prevention.' Dr Rebecca Payne, chair of Nice's Quality Standards Advisory Committee, added: 'Weight management is a long-term journey, not a short-term fix. Little swaps can make tasty, healthy changes. For lots of tips and support to eat better visit: — NHS Blackpool Teaching Hospitals 💙🌈 (@BlackpoolHosp) April 12, 2025 'The evidence is clear that advice and support for maintaining weight after stopping medicines or completing behavioural interventions can help prevent weight regain and enable people to experience lasting benefits. 'We've seen excellent examples of services that already provide comprehensive discharge planning and ongoing support. 'This quality standard will help ensure all healthcare providers adopt these best practices, giving every person the best chance of maintaining their weight management success over the long term. 'This standard ensures healthcare services are equipped to provide that essential ongoing support.' Commenting, Henry Gregg, chief executive of the National Pharmacy Association, said: 'Pharmacies take their responsibilities seriously to provide full wrap around support to patients trying to achieve a healthy weight. 'We know that although medication can be effective in speeding up weight loss in some people, it is not a silver bullet and patients need to make long term lifestyle changes to make their weight loss sustainable. 'The current NHS roll out of weight loss treatment is very small, with only a handful of patients receiving it and it will continue to be the case that the vast majority of eligible patients will be seen by their pharmacy.' Professor Kamila Hawthorne, chairwoman of the Royal College of GPs, said: 'There is no one-size-fits-all approach to tackling obesity – what works for one patient will likely not work for another and, as with any medication, weight-loss drugs do not come without risk. 'It's also the case that patients will likely need support to sustain their weight loss once they stop taking the medication. As such, this is important and sensible guidance from Nice. 'As a college, we've been clear that whilst weight loss medications have significant potential benefits for patients who are struggling to lose weight, they mustn't be seen as a 'silver bullet' and ensuring access to sufficient 'wraparound' services – particularly for when patients come off their medication – will be key to optimal health outcomes.'
