§ Mr. Pavittasked the Secretary of State for Social Services what is his estimate of the increased cost to the North-West Thames regional health authority of the rise in value added tax from 8 per cent. to 15 per cent.; and if he proposes to issue advice on which services should be cut.
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§ Dr. VaughanThe increased cost to North-West Thames regional health authority of the rise in VAT from 8 per cent. to 15 per cent. for the year 1979–80 is estimated to be between £4 and £4½ million. As my right hon. Friend made clear during the debate on 17 July, it is up to health authorities to decide how best to use resources locally. [Vol. 970, c. 1435–36.]
§ Mr. Pavittasked the Secretary of State for Social Services what is his estimate of the increase of resources required by the North-West Thames regional health authority to meet the partial cost of pay awards in the current year; and if he will allow a supplementary allocation of funds to meet this contingency.
§ Dr. VaughanAppropriate Supplementary Estimates provision will shortly be sought to cover the increases in health authorities' cash limits to meet the additional costs of pay awards approved to date; the precise amount of the addition for North-West Thames regional health authority is not yet available. The additions will, however, reflect the full cost of the awards less the region's share of the agreed offset of £23.4 million detailed in my reply to the hon. Member for Wood Green (Mr. Race) on 24 July, and of the £3.4 million which health authorities are required to find in respect of the measures recommended by the Clegg commission to offset the gross costs of the awards to ancillary staff and ambulancemen. The North-West Thames regional health authority's total share of these two offsets is £2.117 million.—[Vol. 971, c.205–6.]