NIC DAKIN MP LEADS ON SAVING HEALTHCARE CHARITIES MILLIONS � Scunthorpe County constituency MP, Nic Dakin has today put down a Private Member�s Bill backing a campaign by the healthcare charity, Sue Ryder, to close an unfair VAT loophole which could see many other healthcare charities lose millions in unnecessary and unfair VAT payments. � � The Bill, which has received cross-party support, calls for healthcare charities, to whom NHS services are being transferred as part of reform under the Big Society and public service agendas, to receive the same ability to recover VAT on non business supplies as the NHS itself and aims to create a fair VAT solution. � New figures produced for Sue Ryder suggest that for every �10m spent by the NHS on outsourcing to the third sector, the additional cost burden will be approximately �400,000. This burden will need to be absorbed by the charity. The figures also reveal that transfers will add 4% to the cost of delivering the services as a result of the different VAT recovery of the NHS and charities. Estimates suggest that the total spend by PCTs on outsourcing to third party service providers is around �80bn per annum. A significant portion of this will be delivered by the charity sector and this will increase in the coming years as the Big Society and public service reform agendas increase, leaving the unrecoverable VAT figures potentially in the billions. � Nic Dakin said: �Sue Ryder is an excellent example of a charity that has built strong links with communities, local and central government. �We need to encourage more charities to build these links and assist in the delivery of public services where appropriate. � �An excellent local example is the Lindsey Lodge Hospice which provides a wide range of services for people living with life limiting conditions such as cancer, multiple sclerosis and motor neurone disease. Over 300 volunteers from the local community donate their time and skills to support the work of the hospice. Many more make voluntary financial contributions. � �It will cost Lindsey Lodge Hospice almost �2 million to provide its services this year. Two-thirds of this will come directly from the local community through fundraising, legacies and donations. This funding picture is typical of the majority of hospices with varying proportions of voluntary funds required. Charities - such as Lindsey Lodge Hospice - do not operate within a vacuum but within their community context in partnership with local government, health and other agencies. These partnerships are what create the climate for success. On average, adult charitable hospices receive 32% in statutory funding and they provide 80% of palliative in-patient beds in the UK. � �However the current VAT inequality, which Sue Ryder has highlighted, acts as a barrier to service delivery from the voluntary sector. �I hope the government will look at this Bill and ensure they address the issue. � �The solution is straightforward: if the Government amended Section 41 of the 1994 VAT Act it would allow charities and the NHS to be on a level playing field in relation to VAT recovery�. � CEO of Sue Ryder, Paul Woodward, added: "As we embark on our landmark agreement to become a preferred provider of palliative care across an entire PCT - a crucial first step in making Big Society healthcare happen - we need the Government to close this unfair VAT loophole and help put millions of pounds worth of charitable donations back into the services they were intended for. As our proposed solution is entirely cost neutral to the Treasury and has now received cross-party backing, we hope to work quickly with the Government to ditch this tax on care and make effective Big Society healthcare reform a reality�. � Sue Ryder provides quality end of life and long term care to people living with challenging and terminal illnesses across the country. � � For more information on Sue Ryder visit www.suerydercare.org