Sourcing NHS consumables when is it cheaper abroad

[Shelsleyf2]

Hi Just trying to work out. If the NHS sources an item from China at say £1.00 or sources a U.K. manufactured similar item for £2.00. Which is cheaper?. U.K. company makes profit emiploys worker who pays tax and spend wages 20% VAT etc etc. Carbon footprint etc At what price is the U.K. product a costlier item ?

[untakenname]

Very hard to read the above.


Cost will be the deciding factor.

How will they know that the product they are sourcing actually comes from the UK rather than just being imported by a UK company?

Most the stuff that's assembled in the UK will actually have the source materials from elsewhere.

[richie99]

Shelsleyf2 said:

Hi Just trying to work out. If the NHS sources an item from China at say £1.00 or sources a U.K. manufactured similar item for £2.00. Which is cheaper?. U.K. company makes profit employs worker who pays tax and spend wages 20% VAT etc etc. Carbon footprint etc At what price is the U.K. product a costlier item ?

UK firm will be laden with debt, owned by a Hedge Fund based in a tax haven. It won't make profits in the UK and won't pay tax. The Directors will pay themselves in dividends and a few minimum wage workers won't earn enough to pay tax and will even be claiming tax credits.

The NHS can't reclaim VAT paid on goods and so the cost is raised by another 20% but it's just a merry go round and not actual revenue for the Government.