VAT reduction on car parking charges : MSP welcomes NHS Tayside’s move at Ninewells

25 February 2009


Marlyn Glen has welcomed news from NHS Tayside that they will take advantage of the effect upon the cost of car parking charges resulting from the reduction in the standard rate of VAT announced by the Chancellor last November in their discussions with Vinci on future pricing at Ninewells.

Ms. Glen said,

" Both NHS Greater Glasgow and NHS Lothian are currently discussing with the PFI car-parking provider how they the recent reduction in the standard rate of VAT can be implemented.

" I wrote to NHS Tayside asking how it was seeking to ensure that these reductions in VAT were being implemented at Ninewells to the advantage of car park users there.

" The car parking charges are rounded up to the nearest 10p, and it is not realistic to change the car parking machines

"The VAT reduction could perhaps be passed on instead through the level of prices for other charges.

"Equally, it could be used as a counter in negotiations on future pricing."

A spokesperson for NHS Tayside said that the charges at Ninewells were rounded up, in accordance with the contract formula for price review, to the nearest 10p.

This was also a practical decision as it facilitated the coin mechanisms of the parking equipment.

However, while the contractor would basically benefit during the current year the additional revenue retained as a result of the VAT would be taken into account when calculating the price review at the 2009 review date.

This would then work to the advantage of NHS Tayside.

Ms. Glen said,

"I am supporting NHS Tayside’s view on the consequences of the VAT reduction, and I believe that its benefits should be passed on it full to car park users at Ninewells."

Ms Glen added that she was supporting the Bill being brought to Parliament by Paul Martin which would see car parking charges abolished "in totality" at NHS hospitals throughout Scotland.


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