The statement followed calls by former Labour leader Neil Kinnock for a windfall tax on private healthcare to fund the NHS.

Private healthcare industry body, International Private Medical Insurance (iPMI) Global, said the move would ‘significantly increase pressures on the NHS'.

In a statement on its website, iPMI said: ‘The higher cost of private care would likely drive many patients, particularly middle-income individuals, back into the public system. This influx of patients could worsen already long waiting times for NHS services, increase strain on overstretched NHS staff and facilities, and potentially lead to service rationing or longer delays for elective treatments, as the NHS struggles to cope with increased demand.'

Stuart Andrew, shadow secretary of state for health and social care, said the proposals were ‘deeply concerning', adding: ‘Adding VAT to private healthcare is short-sighted and unfair, hitting ordinary families trying to access timely care where the NHS is failing them.

‘Many of these are middle-income households already under pressure. Labour's plan would punish them for going private and add even more strain to overstretched NHS services.'

Andrew said the VAT and Insurance Premium Tax hikes would add half-a-million people to the NHS waiting list. 

A Government spokesperson said: ‘Thanks to this Government's record investment, reforms and the hard work of NHS staff, we've cut the waiting list by over 260,000 since July 2024, which also fell for the first time in 17 years in April and May outside of the pandemic. On top of this, we have also delivered 4.6m appointments – more than double the 2m we promised.'