Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will remove VAT from medicines for NHS hospitals.

As the NHS is a public body and is not in business for VAT purposes, the VAT charged by the supplier on the total price of the medications cannot be reclaimed from HMRC. Many public bodies incur VAT in a similar way whilst delivering their statutory responsibilities, and HM Treasury funds them, including the NHS, with this irrecoverable VAT in mind.

There are no current plans to change the VAT treatment of medicines for NHS hospitals. The government keeps all taxes under review.