Why healthcare must be exempt from increased taxation

Sue Weir, CEO of Medicash, has called on George Osborne to make insurance premium tax (IPT) exempt on all healthcare insurance products.

As a result of the Chancellor of the Exchequer’s post-election Budget, there has been a massive increase of 58% in the IPT rate from six per cent to 9.5%. It came into force on 1st November 2015.

Weir believes that the hike could substantially hurt healthcare in the UK. According to LangBuisson, as it stands, there are currently 6.5million people with health cash plans and private medical insurance.

If companies and individuals no longer make their own healthcare plans as a result to this, the already swelling pressure on the NHS will only increase.