§ 10. Mr. BurstowWhat plans he has to compensate the national health service for the additional costs arising from the removal of VAT zero rating for home delivered continence products. [32502]
§ Dawn PrimaroloThe NHS is already fully funded for its VAT costs.
§ Mr. BurstowWill the Minister explain why a written answer that I received recently from the Department of Health clearly stated that the cost of additional VAT being imposed by the Government on the health service is £9 million a year? In a press release before the general election, the Labour party rightly criticised the imposition of VAT on continence products. Why are the Government now only too willing to impose such a tax and, as a consequence, cause great difficulty to the NHS and to elderly and disabled people?
§ Dawn PrimaroloThe hon. Gentleman simply has it wrong. There was no imposition of VAT on the national health service. The NHS is fully funded for its VAT costs. Since the general election, the Government have given the NHS an additional £1.5 billion. The hon. Gentleman is referring to an order that closed an avoidance mechanism being used by private hospitals, which took considerable resources out of the Exchequer. No patient will suffer extra VAT costs as a result of that order, because there are none. Incontinence pads are being treated as part of the provision of health care, so there is no extra burden on the NHS. Some hospitals were using an avoidance mechanism and were therefore being funded twice by the Exchequer. That mechanism was removed.