Care Leaders Network founder, Simon Parker, is calling on care home owners to back a campaign for a change in legislation allowing them to reclaim VAT.
Simon and the group’s more than 250 members will be writing to the Chancellor of the Exchequer on Monday, 6 July asking him to change tax legislation to help ensure the sustainability of care home businesses.
Simon said: “Care home businesses have seen a massive spike in costs because of having to pay for things like additional PPE and at the same time as dealing with a significant decrease in income because they are unable to admit residents.
“My fear is that without this support from the government, this immense financial pressure will become untenable for many businesses.”
The Care Leaders Network founder is asking care home owners to reach out to him and back the campaign before he writes to the Chancellor on 6 July.
Business owners are asked to write to firstname.lastname@example.org and provide details of their number of homes and beds, along with the size of their workforce.
Robert Kilgour, founder of Four Seasons Healthcare and now Executive Chairman of Renaissance Care, who is backing the campaign, added: “The Westminster government and Scottish government have given money to local authorities for distribution, but the sad fact is that much of it has not got to the frontline where it is needed.
“The proposed changes in legislation would be of great benefit to all UK care homes directly as they recover from COVID-19. My contention is that when the money is spent by care homes that it would have a sizeable net positive impact in boosting our ailing economy.”
Letter to be issued to the Chancellor of the Exchequer on Monday, 6 July:
We understand that you may be reviewing options for VAT. As leaders of organisations providing care services we are grateful for the support the Government has provided in response to the COVID-19 pandemic.
As you will be aware care services, unlike other businesses, are unable to register for and reclaim VAT. The temporary zero rating of PPE products was welcome and indicates that you are aware of the burden that VAT places on care services.
We the undersigned would therefore urge you to zero rate all care services in order that supplies maybe purchased more efficiently and in line with other businesses without us having to pass on the additional costs of VAT to families paying for care.
We would welcome an appropriately socially distanced meeting or video call to discuss this proposal if that would assist.
Simon Parker, the founder and the members of the Care Leaders Network.