SOUTH Essex hospitals which are struggling to cope with large financial deficits will have to pay a huge increase in rates over the next five years.

While private hospitals are enjoying a £52million tax break on their business rates bill through their charitable status, NHS hospitals are facing crippling hikes, research has revealed.

Southend and Basildon hospitals have made contingency plans to deal with rates hikes.

Adrian Buggle, Director of Finance at Southend Hospital, said: “For 2017/18, business rates have increased for hospitals across the country, not just at Southend. Our rates have increased by an average of 12 per cent.”

A spokesman for Basildon Hospital said: “We have planned for an increase of 5.2 per cent to payments in 2017/18 from the payments of 2016/17.”

More than one in four of all private hospitals are estimated to be registered as charities and can receive rate relief of 80 per cent, according to figures compiled by business rent and rates specialists CVS.

It calculates this tax perk will save private hospitals in England and Wales £51.9million in business rates over the next five years, slashing the £241.4million they would otherwise be expected to pay.

But this comes as cash-strapped NHS hospitals are being hit with a £1.83billion rates bill over the next five years. Changes to the business rates system that came into effect in April means that NHS hospitals in England and Wales will see their annual rates soar by 21 per cent over the next five years, placing yet more strain on the creaking National Health Service.

Last month Basildon Hospital had a deficit of £6.1million, while Southend Hospital’s deficit for the three months ending June 30 was £3,561,000.

Norman Traub, from the Southend Keep Our NHS Public campaign group, said the odds were being stacked in favour of private enterprise.

The former Southend Hospital consultant said: “This is again evidence that the Government, as in so many other spheres of the economy, favours private companies as opposed to publicly run services.”