Private Physiotherapy VAT Would Contradict Government's Economic Inactivity Goals, Warns Physio First
Trade body representing 2,000+ private physiotherapists calls for exemption as Labour Conference opens
LIVERPOOL – As Labour's annual conference opens today, Physio First, the membership organisation for chartered physiotherapists in private practice, is warning that proposed VAT on private healthcare would directly undermine the government's own strategy to tackle economic inactivity and chronic pain.
Following Lord Kinnock's call for VAT to be applied to private healthcare to raise £2 billion, Physio First is urging the Chancellor to exempt physiotherapy and allied health services from any tax changes ahead of the Budget on 26 November.
The Chronic Pain Crisis
The UK faces an unprecedented chronic pain epidemic:
- 8 million adults suffer from moderate to severely disabling chronic pain
- 43% of UK adults (28 million people) live with some degree of chronic pain
- 41% of pain clinic patients report their condition has prevented them from working
- 13% have been forced to reduce their working hours
- Chronic pain incidence is predicted to grow by 32% by 2040
With approximately 32% of economically inactive people citing long-term sickness, accessible physiotherapy is essential to keeping the workforce healthy and productive.
Private Physio: Supporting NHS and Workforce
Private physiotherapy currently plays a vital role:
- Removes pressure from NHS waiting lists – treating hundreds of thousands of patients who would otherwise wait months
- Enables faster return to work – getting people back to employment quickly after injury
- Supports working families – affordable early intervention prevents conditions worsening
- Backs government NHS strategy – Health Secretary Wes Streeting has emphasised using private sector capacity to reduce waiting lists
The Impact of 20% VAT
Adding VAT would increase costs from an average £60 per session to £72 – pricing many working families out of treatment and forcing them back onto already-stretched NHS services.
Katie Knapton, Chair of Physio First, said:
"This isn't about taxing luxury healthcare - it's about taxing working people who are trying to stay healthy and in employment. A warehouse worker with a back injury, a hairdresser with repetitive strain, an office worker with neck pain - these aren't wealthy people seeking optional treatments. They're individuals who can't afford to wait six months for NHS physiotherapy.
"At a time when the government rightly identifies economic inactivity as a national priority, making physiotherapy 20% more expensive is counterproductive. Our members see first-hand how accessible physiotherapy keeps people working, reduces long-term NHS costs, and prevents chronic conditions developing.
"We're calling on the Chancellor to recognise physiotherapy as essential healthcare, not a luxury, and exempt it from any VAT changes."
Policy Contradiction
The proposals contradict evidence-based recommendations for increased investment in chronic pain management and occupational health services. Recent policy discussions have emphasised funding for treating chronic pain to support workforce participation.
Physio First's Position
Physio First is urging:
- Full exemption for physiotherapy from any VAT changes
- Recognition of physiotherapy as essential, preventative healthcare
- Consultation with healthcare providers before policy implementation
- Impact assessment on economic inactivity and NHS capacity
The organisation represents over 2,000 private physiotherapy practitioners across the UK, delivering hundreds of thousands of treatments annually to patients unable to access timely NHS care.
LATEST UPDATE (30th September 2025)
: Health Secretary Wes Streeting has stated that VAT will not be applied to private healthcare. While this is encouraging, we await confirmation from Chancellor Rachel Reeves in the Budget on 26 November before considering this matter resolved.