Overview

• Health Secretary Wes Streeting said the government will not impose VAT on private healthcare in the autumn Budget, responding to reports of Treasury discussions.
• Multiple outlets report officials have examined ways to broaden the VAT base, including currently exempt services and a lower VAT registration threshold for small firms.
• Chancellor Rachel Reeves said “the world has changed” and that decisions have become harder, while confirming she will set out choices at the Budget next month.
• Chief Secretary Darren Jones said the manifesto “stands” but declined to pre-empt decisions, leaving open the possibility of future VAT-base changes without raising the headline rate.
• Economists cite a funding gap variously estimated between £30bn and £50bn, with an OBR productivity update expected to influence the final tax-and-spend package.