**No VAT Hurdle for Private Healthcare: What This Means for UK Patients and the Budget**

Health Secretary Wes Streeting has firmly stated that the UK government will not impose VAT on private healthcare in the upcoming autumn Budget, emphatically saying to the BBC, “it’s not happening.” This assurance comes amidst ongoing discussions about potential tax increases from Chancellor Rachel Reeves in light of the economic challenges facing the nation.

VAT, which is currently exempt on most private healthcare services in the UK, is a critical point of focus as inquiries about tax rises loom ahead of the November budget. Economists predict that for the chancellor to adhere to her borrowing rules aimed at funding public services, there will need to be some form of tax increases. Reeves, during the Labour conference, acknowledged the difficult choices the government faces, promising to manage taxes, inflation, and interest rates effectively.

While the Labour Party’s manifesto explicitly commits to not raising key tax rates such as National Insurance, income tax, or VAT, Reeves hinted at possible tax rises due to changing global conditions including conflicts in Europe and the Middle East, shifts in US tariffs, and global borrowing costs.

Former Labour leader Neil Kinnock has suggested that introducing VAT on private healthcare could be a significant source of funding for the NHS and has garnered support from groups like the Good Growth Foundation. This think tank estimates that taxing private acute healthcare could generate over £2 billion for public services.

Despite increasing speculation about the need for tax adjustments to address a projected £50 billion gap in public finances, Reeves has criticized forecasts suggesting that such gaps are much larger than realistic estimations, while affirming that the government’s financial decisions are getting more complex alongside ongoing global economic challenges.