The Chancellor's announcement of some tax relief on health-related interventions is welcome. But, at the same time, it also feel likes a missed opportunity.
I would like to see him go even further and remove all tax disincentives to help promote all workplace-health improvement schemes, particularly in smaller companies.
If the current taxes on workplace health were removed, SMEs would see productivity gains of £282m a year; while larger business would also see significant gains totalling £160m.
This overall productivity gain of £443m per year for UK business, would save the economy far more money than the tax it brings in to the Treasury.
The exact details of the Chancellor's proposals are a bit hazy at the moment, but I am concerned that it could hide an unintended problem. Mr Osborne's intention to adopt a low financial limit may actually create a new disincentive through increased compliance costs, making schemes more costly for employers to create and monitor.
That is because companies would need to be able to identify cases qualifying for this new exemption and monitor spending on a case-by-case basis to ensure that the tax-free limit is not breached and they find themselves in trouble with HMRC.
In addition to tax implications, one of the main concerns for businesses when considering whether to provide workplace health services is their overall cost.
Encouraging firms of all sizes to offer wellness and health prevention schemes to their people is a win-win for everyone: it benefits individuals' health, companies' profits and the country's finances.
Bupa will be looking for every opportunity to engage in the consultation process and highlight these long-term benefits to the Government.
Patrick Watt is director of corporate at Bupa Health Funding
