21.06.18
Taxes will rise to fund NHS cash boost, says chancellor
The chancellor will say for the first time that taxes will rise to finance the increase in funding for the NHS.
Phillip Hammond, in a speech due to be made today, will state that tax rises as opposed to greater borrowing will fund Theresa May’s plans to increase funding for the health service by £20bn a year by 2023.
The BBC has reported that the chancellor will “have to contribute a bit more” in a fair and balanced way to support the NHS. "We are getting debt down, while investing in Britain's infrastructure, supporting our vital public services, and helping hard working families across the United Kingdom," the chancellor will announce at the Mansion House in London.
In a poll in April this year, more people than ever were prepared to pay more tax to fund the NHS. Last month the public demanded that mental health and the country’s emergency services had the top priority for any extra funds from the government.
Now, the Conservatives will be looking to raise taxes in an effort to get close to the 4% increase on funding year-on-year that the IFS and Health Foundation claimed would improve NHS care from its current state. In doing so, however, the Tories will be nullifying a key manifesto pledge in 2017 that the party had a “firm intention” to reduce taxes.
Hammond’s speech will outline the Treasury’s intention to continue to reduce the deficit to 2% of the UK’s GDP by 2021. He will go on to say: "We also confirmed we would stick to our fiscal rule and continue to reduce debt."
The skeleton of the speech, released today by the Treasury, did not mention May’s widely-publicised ‘Brexit-dividend,’ which the PM claimed at the weekend could be used to pay for part of the extra spending on the NHS.
Chief executive of the NHS Confederation Niall Dickson said the prime minister’s plans — which will amount to £83bn in costs, excluding inflation, by the end of parliament —has "thrown down the gauntlet" and made clear that the NHS and its staff can shape its future.
"We must set realistic goals and make clear that there will be hard choices ahead," Dickson added. "The danger is that we overpromise and under deliver."
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Image credit: NurPhoto, PA Wire