A Bradford peer has told why he battled to defeat the Government in the Lords over its controversial health care reforms.

Lord Patel of Bradford tabled an amendment to require the Health Secretary to report on the VAT treatment of supplies by charities providing health care services for the NHS – a situation which has been penalising organisations like hospices.

Moving the amendment to the Bill, Lord Patel warned of “major inequality” over irrecoverable VAT for charities providing health care services.

He said while the NHS was able to recover VAT on certain supplies, charities were not. And when services were transferred from the NHS to the charitable sector, there was a “VAT gap” that had to be filled by charitable funds.

“We shouldn't expect the charitable sector .... to subsidise care that everyone agrees is vital,” he said.

Peers voted for it by 195 to 183, a majority of 12.

After the Government’s defeat on Monday, Lord Patel said the need for action was even more urgent given the scope for additional health care services to be taken on by the charitable sector under the Bill.

He worked closely with national charity Sue Ryder in campaigning to urge the Government to cut red tape on VAT for charities.

Paul Woodward, chief executive of Sue Ryder, said: “It marks a significant milestone in our campaign and is a victory for all charitable healthcare providers.”

Read more on this story in today's T&A