HC Deb 14 November 1988 vol 140 c430W
Mr. Galbraith

To ask the Secretary of State for Scotland whether health boards will have to pay value added tax on those contracts for ancillary services which, as a result of competitive tendering, have gone to private companies; and if he will make a statement.

Mr. Michael Forsyth

There are provisions allowing for the recovery of VAT in circumstances where boards would otherwise be penalised financially for putting services out to tender.

Mr. Galbraith

To ask the Secretary of State for Scotland what discussions he has had concerning the payment of value added tax on private contracts for the provision of National Health Service ancillary services; and if he will make a statement.

Mr. Michael Forsyth

VAT policy is a matter for my right hon. Friend the Chancellor of the Exchequer.