Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the letter from the HM Treasury Correspondence and Enquiry Unit of 2 July 2020 to the hon. Member for Hemel Hempstead, ref MC2020/19806, on irrecoverable VAT in the homecare sector, if he will change the VAT status of social care services to zero-rated rather than exemption.

Under the current VAT rules, many care services provided by charities, public bodies and regulated private welfare institutions are exempt from VAT, meaning no VAT is charged on their services. The Government has no plans to review the VAT treatment of these services at present.