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Charge VAT on private healthcare like independent school fees, Kinnock tells Reeves

UNITED KINGDOM, AUG 3 – Lord Kinnock argues VAT on private healthcare could raise over £2 billion to support NHS funding amid rising demand and public backing for tax reform, polling shows.

  • In a fresh appeal, Lord Neil Kinnock urged Rachel Reeves to put VAT on private healthcare in this autumn’s Budget, similar to independent school fees.
  • Analysis shows private acute healthcare was worth £12.4bn in 2024, including £2.1bn from NHS use, prompting calls to impose VAT, as urged by Kinnock.
  • Good Growth Foundation believes applying 20 per cent VAT to private acute healthcare, excluding NHS use, could raise more than 2 billion pounds, supported by a survey of 2,054 adults in Great Britain.
  • Patients using private healthcare to avoid NHS waiting times may oppose the plan, and HM Treasury declined to comment outside fiscal events.
  • Reeves is considering which tax measures to introduce in the Budget later this year, with economic assessments indicating the policy could still generate over 2 billion even with an NHS carve-out.
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iNews broke the news in London, United Kingdom on Sunday, August 3, 2025.
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