# Remove VAT barrier to donated medicines

> “We have been working on a solution that will remove VAT as a barrier to free-of-charge donations of innovative medicines. It will be permanent, backdated to 23 June, so that it supports companies to continue to make donations. We will set out the details shortly”
>
> — Andy Burnham, Prime Minister, Labour Party; Prime Minister's Questions, 21 October 2026

- **Status:** Promised
- **Status ladder:** Promised → In plan → Legislated → Funded → Delivering → Delivered
- **Policy area:** [Taxes](https://ledgergov.uk/promises/area/taxes)
- **Speaker:** [Andy Burnham](https://ledgergov.uk/actor/andy-burnham), Prime Minister
- **Party:** [Labour Party](https://ledgergov.uk/actor/labour)
- **Made on:** 21 October 2026
- **Where:** Prime Minister's Questions
- **Cost a year:** No costing published
- **Who it affects:** Patients receiving innovative medicines donated free of charge, and the companies that donate them
- **When:** Backdated to 23 June; details to follow shortly
- **Paid for by:** Not stated when it was announced
- **Quote source:** https://hansard.parliament.uk/Commons/2026-10-21/debates/75C8A826-17E0-47BD-A4C3-A2DCD01144FB/Engagements (checked word for word at its source on 25 October 2026; Open Parliament Licence v3.0)
- **Last updated:** 25 October 2026
- **Card:** https://ledgergov.uk/promise/uk-vat-donated-medicines-2026

## Where it stands

Asked about a patient whose cancer drug was no longer given free after a drug company left a compassionate use scheme following the government's VAT changes, the Prime Minister said the Exchequer Secretary has announced a new approach. He gave no cost and no date for the details. The card moves when the government publishes the change.

## Timeline

- 21 October 2026, Promised: The Prime Minister says the government will remove VAT as a barrier to free donations of innovative medicines, permanently and backdated to 23 June

## About the cost

No cost has been published.

## Sources

- [Hansard, House of Commons, 21 Oct 2026: Engagements (Prime Minister's Questions)](https://hansard.parliament.uk/Commons/2026-10-21/debates/75C8A826-17E0-47BD-A4C3-A2DCD01144FB/Engagements)

## Checks

- Checked automatically by AI Journalist, not yet verified by an editor.
- Checked by AI Journalist (automated) on 25 October 2026.

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