§ Mrs. EwingTo ask the Secretary of State for Health what assessment he has made of the impact of restrictions placed by Customs and Excise on(a) the ability of NHS bodies to recover VAT retrospectively on contracted-out services on the budgets of NHS trusts and (b) the use of external services within the NHS; and what assessment he has made of the losses that will be incurred in respect of these restrictions by NHS trusts in England and Wales. [2325]
§ Mr. HoramHer Majesty's Customs and Excise have extended the deadline for national health service bodies to submit retrospective claims for value added tax refunds on contracted out services. There should be no effect on the use of external services. It is not feasible to assess whether any VAT will remain unrecovered.