HC Deb 09 July 1979 vol 970 cc44-5W
Mr. Dubs

asked the Secretary of State for Social Services what will be the additional burden on the National Health Service (a) this year, and (b) in a full year, of the increase in value added tax.

Mr. Moyle

asked the Secretary of State for Social Services what is his estimate in sterling for a full financial year of the extra sums the National Health Service will have to pay for its supplies and equipment as a result of the increase in value added tax.

Mr. Patrick Jenkin

In relation to health services in England the estimated additions are about:

  1. (a) £45 million.
  2. (b) £65 million.

Mr. Moyle

asked the Secretary of State for Social Services what is his estimate in sterling for a full financial year of the extra sums the personal social services will have to pay for their supplies and equipment as a result of the increase in value added tax.

Mr. Patrick Jenkin

The extra cost will be minimal. Value added tax payable by local authorities, other than that relating to the carrying on of a business activity or on motor cars, is refundable under section 15 of the Finance Act 1972.

Mr. Ronald W. Brown

asked the Secretary of State for Social Services whether he will bring forward proposals to reimburse regional health authorities for value added tax payments, in view of the fact that it is estimated that the increase in value added tax will cost the North-East Thames regional health authority £3.5 million for 1979–80.

Mr. Patrick Jenkin

No.