Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, if he will pause proposals for NHS trusts to (a) form or (b) make changes to subsidiary companies until after the Government has concluded its assessment of its proposals to reform VAT refund rules.

The Health and Social Care Act 2012 established a level playing-field in which any qualified provider can provide National Health Service-funded services to encourage greater diversity of supply and improve patient choice. As such, it is vital that all providers, be they NHS or private sector, operate within existing VAT legislation as applicable to their particular entity.

Initial responses to the HM Treasury consultation on changes to S41 of the 1994 VAT Act are due by 19 November 2020. There are no plans to pause proposals for NHS trusts to form or make changes to subsidiary companies.