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Media Release : UKHCA responds to the Budget - 23/06/2010Leading domiciliary care providers’ representative, the United Kingdom Homecare Association, reacts to the emergency budget of the new Government as follows. While recognising that a 2.5% increase in VAT will affect many businesses, this additional cost is a double-blow for the UK’s homecare providers. Regulated care services are currently exempt from VAT, meaning that although customers are not charged VAT, homecare providers themselves are unable to reclaim tax on the goods and services necessary to deliver the service. At the same time, providers have little chance – if any – of recovering these costs from their cash-strapped local authority purchasers. UKHCA’s Chair, Mike Padgham, said: “UKHCA’s Board is due to meet and consider a range of options, including a concerted campaign to get regulated care services zero-rated status.” In addition, spending cuts that the budget demands from councils – who are the majority purchaser of social care – are routinely passed on to independent sector providers. At the same time councils are creating more onerous and costly contract arrangements. Padgham continued: “Care providers realise that they will share in the pain to put the country’s finances on an even footing, but the homecare sector has already been subject to a relentless pressure to lower prices long before the current financial crisis. Increased taxation and public spending cuts mustn’t be allowed to damage essential frontline services.” Ends. Home - About Us - Choosing Care - UKHCA Membership - Homecarer - Publications - Disclosure - Conferences & Workshops - Training - Assessment Centre - Projects - Media Statements - For Researchers - For Advertisers - Site Map - Links - Contact Us - Accessibility - Top of Page Disclaimer: All efforts have been made to ensure the accuracy of this site's information. Please note that advice given on these pages is intended to be general advice only, was correct at time of publication, and will be updated from time to time. No responsibility can be accepted for action taken, or refrained from, solely by reference to the contents of this web site. Users are reminded of the need to take accurate advice appropriate to their own requirements. If you have any comments on this web-site please contact the webmaster. View our Privacy Statement.
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