NHS facing rate hikes as private hospitals get £52m tax break

Private hospitals in the UK are using a tax perk to save £52m on their business rates while NHS services struggle with hikes, new research has shown.

According to a collection of data from rates specialists CVS and the Press Association, over a quarter of private hospitals are registered as charities, thus at times being relieved of 80% of their business rates.

Rates bills for NHS hospitals will increase 21% over the next five years following the introduction of new legislation in April.

CVS requested that local councils provide details of the tax relief provided for the 626 private hospitals in England and Wales.

Its chief executive said it was 'iniquitous' that private hospitals receive such a high percentage of tax relief.

"It is iniquitous that NHS hospitals pay normal business rates but 26.9 per cent of private hospitals, using charitable status, receive an 80 per cent discount," Mark Rigby commented.

The University Hospitals Birmingham Trust is one of the NHS services which will be most affected by the rise in rates, and said in a statement that there was an ‘anomaly’ in how such public services were charged.

"The Trust believes there is an anomaly in how NHS Trusts are treated for business rates when compared to other organisations such as universities, charitable care facilities and private hospitals," it said.