§ Mr. Spearingasked the Secretary of State for Social Services what arrangements is he making to reimburse contractors to the National Health Service any increase in their costs consequent on the increase of value added tax to 15 per cent.
§ Sir George YoungVAT paid by contractors supplying goods or services not exempt from this tax is recoverable and does not form part of their costs. A variety of methods exist to ensure that contractors who are exempt from VAT receive payment to cover any tax which they have incurred.