Labour demands end to VAT loophole by NHS trusts putting jobs at risk

The Labour Party is demanding an end to a VAT loophole used by NHS trusts which they say could put thousands of jobs at risk. “Eight trusts have set up private companies and transferred 3,000 support staff such as cleaners and porters into them. A Health Service Journal report claims 16 more trusts are drawing up similar plans, affecting another 8,000 staff, to save on VAT bills. Shadow Health Secretary Jonathan Ashworth will write to Jeremy Hunt to tell him the move means an ‘unacceptable two-tier workforce.’ He will accuse the Health Secretary of ‘back door privatization’ by taking staff off the NHS payroll.”