Government rejects bid to exclude hospitals from 'high street levy'

A House of Lords bid to exclude NHS hospitals from a £75m high street levy has been rejected by the Government.

(c) Enrique/Pixabay

(c) Enrique/Pixabay

Global tax and software firm, Ryan, said 297 NHS Hospitals in England will be subject to the new ‘levy', including major hospitals such as the Royal London Hospital, Royal Deby Hospital, Bristol's Southmead Hospital as well as smaller hospitals like Leigh Infirmary in Lancashire.

Alex Probyn, practice leader of EAP property tax at Ryan, said: ‘The amendment from the House of Lords was both sensible and logical – the very largest properties, just like NHS hospitals, aren't necessarily those with the broadest shoulders.'

The high street levy for properties with a rateable value of £500,000 or more was introduced after the Government pledged in the Autumn Budget to introduce lower business rates for high street retail, hospitality and leisure business premises with a rateable value of less than £500,00 from 2026.

Despite the House of Lords amending the legislation to exclude healthcare from the new levy, Lord Khan, Parliamentary under-secretary of state, Ministry of Housing, Communities and Local Government, said ‘while there have been amendments made to the Bill for the Commons to consider, the Government do not accept them'.

The Bill received Royal Assent and became law on 3 April.

A Treasury spokesperson said: ‘Our reform to the business rates system will create a fairer business rates system that protects the high street, supports investment and levels the playing field. A new, permanently lower business rate in 2026 will benefit over 280,000 retail, hospitality and leisure business properties and will be sustainably funded by a new, higher rate on the 1% of most valuable business properties.

‘Repairing and rebuilding our hospital estate is a key part of our ambition to create a health service fit for the future and the New Hospital Programme is now on a credible and sustainable footing thanks to the £22.6bn increase in day-to-day health spending and a £3.1bn increase in the capital budget over this year and next.'

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