Business clashes with Labour over NHS

CBI warns Labour over threat to cap profits on health care

John Cridland freeThe CBI has warned that Labour leader Ed Miliband’s threat to curb private sector involvement in the National Health Service will be damaging for British business.

Labour is proposing to cap profits at 5% on outsourced healthcare contracts worth more than£500,000.

But John Cridland, CBI Director-General, said: “Our public services, including the NHS, face huge challenges in the coming years from a growing and ageing population.

“It will take bold decisions like integrating health and social care to help address these pressures and business has a role to play in this transformation.

“A blunt profits cap is likely to discourage firms from investing in the new services and technologies our health service urgently needs. Decisions on profit levels should be taken between the commissioner and supplier on a contract-by-contract basis.

“Business remains concerned about any direct interventions which have the potential to undermine investor confidence.”

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