Socialist Worker

The NHS - a new tax dodge for private firms?

by Sarah Ensor
Issue No. 2336

Private companies, such as Virgin Care and InHealth, are lobbying to avoid tax on the profits they make from health care contracts.

The NHS doesn’t pay tax because it is publically owned and non-profit making. The health regulator Monitor seems happy to support the private companies.

The firms claim to want equality of opportunity with the NHS but the tendering process is loaded against the NHS.

Each NHS bidder has to pay for research and legal fees in competition with each other as well as with huge corporations with deep pockets.

These companies only want NHS contracts to make profit. When a private health centre has not been profitable enough or has been incompetently run they have dumped the contract on the NHS.


They don’t want to pay tax that could hit their vast profits.

Monitor can’t be trusted to safeguard the NHS.

The Tories’ Health and Social Care Act removes responsibility from the health minister to provide “a universal and comprehensive health service”.

And it doesn’t hand that responsibility to anyone else. It leaves Monitor to promote competition, decide what private companies can do in the NHS and how they can undercut NHS bids.

The Care Quality Commissions said some 26 health providers—including hospitals, ambulance services and mental health trusts—have been found with unsafe staff levels.

If you enjoy Socialist Worker, please consider giving to our annual appeal to make sure we can maintain and develop our online and print versions of Socialist Worker. Go here for details and to donate.

Article information

Tue 15 Jan 2013, 16:32 GMT
Issue No. 2336
Share this article


Mobile users! Don't forget to add Socialist Worker to your home screen.