Shadow Health Secretary Wes Streeting Rejects Calls for VAT on Private Healthcare
LIVERPOOL – Shadow Health Secretary Wes Streeting has firmly ruled out implementing a Value Added Tax (VAT) on private healthcare, despite growing pressure to identify funding sources for a strained National Health Service. The stance contrasts with recent suggestions from within the Labour party, including former leader Neil Kinnock, who advocated for the tax to bolster public services.
streeting’s position emerged as Labour’s annual conference grapples with the economic realities facing a potential future government. Kinnock, in an interview with i newspaper, argued that removing the VAT exemption on private healthcare would generate “vital funding” and enjoy ”wide public support.” The Good Growth Foundation think tank estimates such a move could raise over £2 billion.
However, Streeting dismissed the proposal, reaffirming Labour’s existing manifesto commitments. While acknowledging the changed global economic landscape - citing wars in Europe and the Middle East, US tariffs, and rising borrowing costs – he maintained that tax policy would adhere to previously stated plans.
The debate over potential tax increases comes amid warnings of significant gaps in the public finances. Last month, the National institute of Economic and social Research (niesr) estimated a £50 billion shortfall, a figure downplayed by the Chancellor who dismissed the forecasts as “rubbish.”
Shadow Chancellor Rachel Reeves has also indicated adherence to manifesto pledges when questioned about potential tax rises,stating,”The manifesto commitments stand.” Prime Minister Sir Keir Starmer echoed this sentiment at the conference.
