§ Mr. Nicholas Bennett
To ask the Secretary of State for Wales if he will make a statement on proposals by the European Community to charge value added tax on new building and fuel for National Health Service hospitals and the action he is taking to increase capital and revenue allocations to ensure that health authorities are reimbursed for such expenditure.
§ Mr. Grist
The Government are reviewing the most appropriate way of compensating health authorities for the application of VAT to new construction. An announcement will be made in due course.
The capital and revenue allocations announced recently to health authorities take into account the effect of the charge in relation to VAT on fuel and power.