Continence Products (Vat)

Mr. Burstow
To ask the Secretary of State for Health what estimate his Department has made of the cost to NHS trusts of the removal of VAT zero-rating on continence products in (a) 1997–98 and (b) 1998–99. [31866]

Mr. Boateng
The National Health Service is funded on the basis that Value Added Tax is payable on healthcare. The re-imposition of VAT on continence products is estimated to amount to £2.25 million in 1997–98 and £9 million in 1998–99.