Health Secretary Wes Streeting has dismissed suggestions that private healthcare services could soon be subject to VAT, despite reports that the Treasury was exploring the option. Asked directly whether the idea was being considered, he replied firmly: “It’s not happening.” His remarks come as Chancellor Rachel Reeves prepares for her first Budget in November, under pressure to balance public finances without breaching Labour’s election pledges.

Reeves has faced mounting speculation over potential tax rises, with economists warning additional revenue will be needed to meet her borrowing rules. While Labour’s manifesto ruled out increases to VAT, National Insurance and income tax bands, ministers have stopped short of ruling out changes to how VAT is applied. At present, most private healthcare services are exempt from the 20% sales tax, aside from procedures deemed primarily cosmetic. By contrast, VAT on private school fees was introduced in January, with forecasts suggesting it could generate £1.7bn a year by 2029.

Although Reeves has repeated that her manifesto commitments remain, she has also warned that “the world has changed,” citing global conflicts, trade tensions and higher borrowing costs as factors making tough decisions inevitable. Critics, however, say Labour risks leaving itself little room to manoeuvre.

Some voices within Labour, including former leader Neil Kinnock, have urged the government to remove VAT exemptions from private healthcare, arguing it would provide much-needed NHS funding. Think tanks have suggested such a move could raise up to £2bn annually, though Streeting’s intervention indicates the policy is not on the table for now.

The government has announced plans to roll out a nationwide online hospital service in England within the next two years, aiming to ease pressure on waiting lists. Sir Keir Starmer is expected to unveil the initiative at the Labour Party’s annual conference, describing it as part of a “new world” for healthcare. The new NHS Online platform will employ its own doctors, who will manage patients choosing to access care virtually. Routine consultations, assessments, and follow-up appointments will all be handled digitally.

Health Secretary Wes Streeting said he was “really excited” about the project, highlighting that pilot schemes have already delivered results at hospitals such as University Hospital Southampton and Moorfields. Through the NHS app, patients will also be able to book scans, tests, and procedures at local diagnostic centres. Officials believe the service could eventually provide up to 8.5 million appointments in its first three years, significantly increasing capacity compared with an average NHS trust.

The programme will initially target specialities where patients often need monitoring rather than inpatient treatment, such as eye care, gynaecology, and digestive conditions. NHS leaders have stressed that safety will remain a priority and only appropriate areas will be included. Examples from earlier pilots showed improved efficiency, including a 58% reduction in waiting times for some patients.

While many experts have welcomed the modernisation, others have raised concerns about staffing, digital access, and data security. The British Medical Association has also warned of risks linked to broader online booking systems. Ministers insist, however, that the digital shift will free up face-to-face capacity and help the NHS keep pace with modern patient needs.