Eighty NHS trusts in England have written to local authorities claiming they are eligible for an 80% discount on business rates
Cash-strapped hospitals are trying to avoid paying taxes and win a £1.5bn rebate in a move that could have a major impact on the finances of local authorities.
At least 80 NHS trusts in England have written to local authorities claiming they are eligible for an 80% discount on business rates through a loophole in the tax system. The number of applications represents roughly half of the NHS acute trusts in the country.
The discount would be worth an estimated £250m a year, but the trusts also want it backdated for six years, meaning the government and local authorities, who share business rate revenues, could have to pay £1.5bn.
The row highlights the financial pressure on the NHS and the tensions between different parts of the public sector as they battle for funding in the wake of the government’s austerity cuts.
Council representatives said the demands from hospitals are “ridiculous” and warned they will have to increase council tax to cover shortfalls in their funding. (AtW's comment: no, it's ridiculous to expect public hospitals to pay BUSINESS rates in the first place)
The NHS trusts are claiming they should be classified as charities, meaning they would be eligible for a tax break. Charities enjoy an 80% discount on business rates, which is the equivalent of council tax for non-residential tenants of property. Universities already qualify for relief, as do some private healthcare providers, such as Nuffield Health, which is registered as a charity.
Source: Cash-strapped hospitals ask for £1.5bn tax rebate | Business | The Guardian
WTF NHS hospitals even have to pay BUSINESS RATES???
Cash-strapped hospitals are trying to avoid paying taxes and win a £1.5bn rebate in a move that could have a major impact on the finances of local authorities.
At least 80 NHS trusts in England have written to local authorities claiming they are eligible for an 80% discount on business rates through a loophole in the tax system. The number of applications represents roughly half of the NHS acute trusts in the country.
The discount would be worth an estimated £250m a year, but the trusts also want it backdated for six years, meaning the government and local authorities, who share business rate revenues, could have to pay £1.5bn.
The row highlights the financial pressure on the NHS and the tensions between different parts of the public sector as they battle for funding in the wake of the government’s austerity cuts.
Council representatives said the demands from hospitals are “ridiculous” and warned they will have to increase council tax to cover shortfalls in their funding. (AtW's comment: no, it's ridiculous to expect public hospitals to pay BUSINESS rates in the first place)
The NHS trusts are claiming they should be classified as charities, meaning they would be eligible for a tax break. Charities enjoy an 80% discount on business rates, which is the equivalent of council tax for non-residential tenants of property. Universities already qualify for relief, as do some private healthcare providers, such as Nuffield Health, which is registered as a charity.
Source: Cash-strapped hospitals ask for £1.5bn tax rebate | Business | The Guardian
WTF NHS hospitals even have to pay BUSINESS RATES???
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