NHS: Temporary Employment

Health written question – answered on 11th March 2009.

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Photo of Paul Burstow Paul Burstow Shadow Chief Whip (Commons)

To ask the Secretary of State for Health what representations he has received on the potential additional cost to the NHS of changes to the value added tax treatment of agency staff; what estimate he has made of that potential cost; and if he will make a statement.

Photo of Ann Keen Ann Keen Parliamentary Under-Secretary (Health Services), Department of Health

Due to the way in which correspondence is logged, information on the specific number of representations received on the potential additional costs to the national health service of changes to the value added tax treatment of agency staff could be obtained only at disproportionate cost.

The latest estimate of the potential cost to the NHS is £26 million per year, revised from an earlier estimate of £30 million when VAT stood at 17.5 per cent.

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