The cost of controversial plans for a national care service has swollen further after ministers admitted it faces losing out on at least £32 million of tax breaks.
External advice from Anderson Anderson & Brown, the tax specialists, said that the new centralised body for an NHS-style care system may be forced to pay VAT, which is currently avoided by regional boards.
Kevin Stewart, the social care minister, said that it cost the current oversight boards, which would be replaced under the new model, about £32 million in the tax before they negotiated effective exemption.
“As this was for adult health and social care functions only, the worst-case VAT cost impact associated with the creation of the NCS [national care service] would likely be in
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