Private NHS suppliers cannot avoid tax, says Monitor

The health sector regulator Monitor has ruled out any corporation tax exemptions for private sector medical providers to the NHS despite vociferous lobbying.

Although the new health regulatory body has not yet published any recommendations or findings, far less a draft report, of the Fair Playing Field Review, Monitor has confirmed that it 'does not intend to provide a running commentary on the review'.

Monitor has yet to decide what recommendations it will make to the secretary of state. However in the light of recent speculation, Monitor has decided to clarify the position on one specific issue.

In a statement Monitor said: 'While it is the case that corporation tax is one of many distortions that the review is looking at, Monitor will not be recommending that private sector providers should be exempt from paying corporation tax.'

The government called for the independent review in June 2012, to assess matters that may be affecting the ability of current and future providers of NHS services to participate fully in improving patient care.

The purpose of the review is to examine whether there are matters that mean not all NHS-funded healthcare providers operate on an equal footing - and if so, whether something can be done that would address problems and result in significant benefits for patients.

The review recommendations will be reported to parliament in March 2013.

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