4. To ask the Scottish Government what it considers the impact will be in Scotland of the reintroduction of VAT on personal protective equipment. (S5T-02473)

The Scottish Government firmly disagrees with the United Kingdom Government’s decision to reintroduce VAT on PPE at this time, and we will be pressing for the decision to be reversed. Unfortunately, the decision was taken without consultation with Scottish stakeholders, which has made it extremely difficult for us to analyse the impact that it will have in critical areas.

This UK Government decision is likely to be of significant concern to many stakeholders, including social care providers, which are already working hard to ensure that those who work in social care settings are provided with sufficient PPE over the winter months. They will now be worried about the impact of this VAT cost increase.

When I first heard that VAT was being put back on PPE, I thought that it was surely a joke—it could not be a serious proposition. Does the Minister agree with Donald Macaskill, the chief executive officer of Scottish Care, who wrote:

“To put #VAT back on #PPE in the middle of the #SecondWave of #Covid19 is pure madness. You have just made saving lives 20% dearer. Time for a rethink @RishiSunak”?

I agree 100 per cent with Donald Macaskill on this. Has the Scottish Government made representation to the UK Government on the matter?

I, too, agree 100 per cent with Donald Macaskill on the issue. The Scottish Government agrees that it makes no sense to remove that VAT relief at this time. The decision by the UK Government was unexpected and was made without consultation with Scottish Government officials or stakeholders. We believe that it should be reversed and we will press the UK Government on that.

Thank you. Has the Scottish Government made any assessment of the additional costs to the Scottish Government, local authorities and care providers? Does the Minister agree that the Treasury’s decision to impose the mask tax must be reversed, because it has the potential to do significant harm and undermine the fight against Covid-19?

Given the lack of notice and the unexpected nature of the decision, as I said in my previous response, we are now in the process of carrying out an urgent assessment of the additional costs of the decision, including the costs for care providers. As Mr Crawford alluded, in these times, if the UK Government is considering anything, it should be extending the relief to things that help to protect against the virus, such as face coverings, rather than putting the tax back on PPE.

Considering the extent of the taxation powers that the UK Government has at its fingertips, I am astonished that, in order to raise revenue, it is choosing to remove VAT relief on PPE rather than introduce something like a windfall tax. We will press the UK Government to reverse its decision, and we will engage as constructively as possible with all Scottish stakeholders and continue to assess the impact of the decision. As I said, we will press for its reversal, because it is the wrong decision.