Summary
Health Secretary Wes Streeting stated that the UK government will not impose VAT (Value Added Tax) on private healthcare in the upcoming autumn Budget. While Chancellor Rachel Reeves faced questions about potential tax increases, she emphasized the government's commitment to maintaining low taxes but acknowledged challenges due to global events.
Key Facts
- Wes Streeting confirmed there will be no VAT on private healthcare in the UK.
- Most private healthcare in the UK is currently exempt from VAT.
- Chancellor Rachel Reeves discussed the possibility of tax rises to meet borrowing rules.
- Reeves stated Labour's manifesto commitments include not raising VAT.
- Reeves highlighted challenges from international events affecting the economy.
- VAT is usually 20% on goods and services in the UK unless they are reduced or zero-rated.
- Former Labour leader Neil Kinnock suggested adding VAT to private healthcare to fund the NHS.
- Economic think tanks estimate potential tax increases to address a £50bn gap in UK finances.
