VAT on private health

Why are some services exempt?

Because they provide a public good; education and healthcare are both good things for society. We want more of both of them.

There's VAT on food and fuel that everyone needs and uses and none on private healthcare and private medicine that are just for the rich, Makes no sense to me. VAT is the most regressive tax ever.

Actually most of the time that’s not the case. Most Drs in private care are working in the NHS. In our area (I believe it’s the same in most areas), the Dr has to be working full time (10 PAs), before they can sign up to the private hospital.

Unless that service is getting your nails painted, you shouldn't be paying tax on it. This is how the government gets away with it. Instead of saying the government has to stop encroaching on every aspect of our lives with these ridiculous rip off taxes, which drive the price of everything up, people want them to tax MORE stuff.

I have to pay VAT on other services, why is Private Healthcare different?

edit:
Why are some services exempt?
Is it because it for the richer among us?
Private School, Private healthcare?

I know a doctor who has had to take on days working in private to pay for the VAT on school fees. A bit ironic.

Why should it be taxed?

I agree

If you're buying a service, why should some be VAT free? Doesnt make sense.

A family member is a consultant and works in both the nhs and the private sector. They work 100% of the contract they've signed + more for training junior doctors and answering calls out of hours. They also work weekends for the nhs to help alleviate the long waiting time. Only the remaining time goes to private.

If they were to work longer hours more budget will be needed hence more pressure on the government.

Is is true that private hospitals have a lot of spare capacity? I have unfortunately had to use private healthcare a lot in the past and used to be able to get an appointment within one or two weeks. Waiting times are now typically two months for an appointment, which while much much better than the 18 month wait on the NHS is a lot longer than it used to be. Presumably because so many people are now having to use private healthcare in order to avoid an 18 month wait.

I don't agree with VAT on private schools fees or on private healthcare. I wouldn't / don't use either so technically it doesn't make much difference to me personally. But if people are using private hc and private sch they are lessening the burden on government services, they are also likely to be the higher tax payers.
We'd all like a better economy, we'd all like more money and we'd all like better services. But adding VAT isn't really the answer. The UK is the fourth highest giver to foreign aid spending £888 million in 2023. Perhaps until our economy and services have improved we should reduce our foreign aid budget?
Perhaps we could also get rid of the bloat in many government organisations, we're rapidly becoming more of a service than manufacturing economy and that's not good for longer term economic forecast.
Unfortunately the last labour government borrowed very heavily and Brown sold off a fair amount of our gold deposits. Whilst this helped to release funds for short term investment in services it wasn't sustainable longer term. The reason for austerity was to try and rebuild the deficit labour created.
I'm all for a labour government now, because for the first time labour won't be inheriting a 'healthy' economy. It'll be interesting to see how they rebuild it. Let's see how Starmer sorts out the current financial mess.

NHS consultant contracts were set up specifically to allow them to continue private work. That was one of the many compromises that had to be made in order to set up the NHS out a network of private and charitable medical practices/hospitals. It is those compromises and complexities built into the system from the start that cause many of the problems now.

Last time we had a Labour government they did waiting list initiatives where Drs were paid to do eg extra surgical lists on weekends which most are willing to do for the right price and this cut the waiting lists down quickly. I could never really understand why they don't just do that now post Covid but probably it's because it costs a lot of money short term.

There isn't really any 'spare capacity' in the private sector as all the Drs working privately were NHS trained and gained their experience there and work most of their week for the NHS they just find it more lucrative to work some days privately. With the erosion of NHS salaries in real terms and the pent up demand post Covid more and more Drs and doing more and more private work. I am in a minority of my consultant colleagues in not working privately.

I am a Dr who does not do private work, have private health insurance or privately educate my kids because I live by my principles. I would do a wait list initiative though because it would
help NHS patients

Banning private work is not the way to go as this will only alienate more Drs and lead to more of them leaving altogether.

But the NHS will be great so probably won't need it

There seems to be a disagreement about how this works out. Some people think that private takes time and resources away from the NHS, thus meaning that people wait longer or don't have access to a particular doctor with particular expertise. To be honest, I'm not sure who is right. I would be in favour of having no (or low, maybe 3%) VAT on both healthcare and education. But, then, I think there a lot of things that shouldn't be included in VAT. It's ridiculous that the government pays out pensions and benefits and then taxes those people when they turn their heating on.

However, along side training more healthcare professionals - we may just spin in place.

No. It shouldn't do. Private hospitals have a lot of spare capacity and there are many medics keen to do private work without the flare for entrepreneurship. So what happens is private equity firms/entrepreneurs set up companies that deliver NHS contracts in private hospitals. NHS doctors simply come in, deliver the service and leave. They are not responsible for the management as you would be in your own private clinic. It makes private practice more accessible for more medics. So may well increase NHS waiting times in the long run

I also think this is a disingenuous thread about VAT on private school fees yet again 🥱 but in fact yes I think VAT on private healthcare is a great idea

Private health is a luxury that should be taxed
Private healthcare depletes the NHS of the very scarce resource of staff who are sorely needed and Drs are harder to replace, more costly to train than teachers

I would never pay for private education
Unlike Keir Starmer I am willing to admit that in a crisis I might pay for private healthcare (I wouldn't pay for insurance on an ongoing basis) but I am lucky to be able to do that and I am happy for it to be taxed.

So is this going to create a huge waiting list for private healthcare now? Effectively meaning there's no point having it?

Why are you talking about jumping the queue? The private healthcare system is a completely separate from the NHS system. If anything, the people paying are reducing the waiting time for those on NHS waiting lists.

No, I'm saying I don't want people to die because somebody else jumped the queue. Re-read my post.

Private schools fees £2k per month vs private medical insurance for our family at £1k per year. It is often included in work packages as well. It's no where near as unattainable as private school fees (coming from someone who could/does afford both).

I agree with your point OP. Children’s education is fair game for VAT, but not people queue jumping to get an ADHD diagnosis. Tax it all or don’t, just be consistent

Except there would be no staff to implement it on as they would leave. Yes they have families etc but they are a very mobile workforce, highly desirable elsewhere. More - not less - consultants now work in the private sector. That is the direction of travel without reform and reform is improved working conditions and pay not shackled service