Question to the HM Treasury:

To ask Her Majesty's Government further to the Written Answer by Lord Bates on 1 November (HL2444), and in the light of guidance from HMRC stating that VAT refunds paid under s 41(3) of the Value Added Tax Act 1994 are met from public expenditure rather than VAT revenue, whether refunds paid to the NHS under that section are met out of the NHS spend voted by Parliament; and if so, whether the Vote is adjusted in order to meet the additional costs of those refunds.

NHS expenditure is included in the Department of Health budget, which is voted by Parliament. Budgets are set net of recoverable VAT and therefore take account of payments under section 41 of the Value Added Tax Act 1994.