VAT on Air Ambulance Fuel Payments

Debate between Hugh Bayley and Mark Pawsey

Wednesday 11th July 2012 Commons Chamber

[Mark Pawsey]

That serves to highlight the unique nature of the air ambulance organisations.

On the payment of VAT, or any other tax, let me quote from a representation from Warwickshire and Northamptonshire Air Ambulance:

“Along with the rest of the world, we would welcome any reduction in taxation levels and in an ideal scenario we would pay no VAT on any aspect of our service.”

That is right, of course. In an ideal scenario—when we are enjoying periods of sustained economic growth and there is no pressure on Government finances—many different kinds of concessions can be made, but unfortunately this Government have been left with a structural deficit, so they may not be able to fund all the items of expenditure that we might want. The air ambulance service made this point to me:

“In the current fiscal climate we believe that charities and organisations like ourselves whose sole aim is to benefit our communities, should not seek further strains on the public purse.”

There is a contrary view, therefore, and it is held by the air ambulance service based in my constituency.

[Hugh Bayley]

I imagine that the hon. Gentleman’s points will be considered by the Treasury if the motion is passed tonight, and so they should be. However, the Royal National Lifeboat Institution has the VAT exemption, but that does not act as a bar to its raising funds for its services. Is he aware that the Association of Air Ambulances—which represents the 18 air ambulance services in the country, including his—put out a press release calling on the Chancellor

“to introduce a balanced and fair approach to the application of VAT and duty charged on Aviation Fuel where it is used in helicopter emergency medical services”?

Although his points are valid, could they not be considered as part of such a Treasury review if we pass the motion tonight?

[Mark Pawsey]

I shall support the motion, but I am putting to the House the contrary view, which is about the unique nature of our air ambulance services.

On the basis of the quote I have just read out, we should applaud the sense of public duty displayed by the air ambulance that covers the area I represent.