The government has denied that it will give in to campaigners calling for charities delivering public services to receive a VAT refund.

Responding to a written question from Conservative MP Aidan Burley, exchequer secretary to the Treasury David Gauke (pictured) said “the chancellor has no current plans to do this”.

Burley had highlighted the VAT refund received by local authorities and the NHS, but Gauke said this was taken into account as part of their overall funding arrangements, and that this was the most efficient means of delivering that funding.

Late last year the Charity Tax Group said the decision to give academy schools, which are themselves registered charities, a VAT rebate, reopened the debate on a rebate for charities and that it would be arguing strongly on the subject.