Rachel Reeves is urged to slap VAT on private healthcare

Rachel Reeves is being urged to charge VAT on private healthcare in order to raise billions of pounds more for the NHS.

Lord Neil Kinnock, the former Labour leader, has called on the Chancellor to remove the VAT exemption on private healthcare at her autumn Budget.

The Labour peer - who also recently told Ms Reeves to introduce a 'wealth tax' - claimed this would 'generate much–needed revenue' for the NHS and would be 'widely supported' by the British public.

The Government's recent U–turns on welfare reform and winter fuel payments have left Ms Reeves with a multibillion–pound black hole to fill in the nation's finances.

This has fuelled expectations she will opt for further tax rises in the autumn.