Tax rises will be needed to pay for the boost in NHS funding
19 June 2018
Theresa May says taxpayers will have to help fund the NHS funding boost and conceded the public would pay more but promised this would be done in a "fair and balanced" way.
According to a report from the BBC, Ministers say there will be more details in the Budget in the autumn - the options under tax rises are as follows:
- There will be a desire to keep any rises to a minimum given the Conservative Party manifesto at the last election said its intention was to reduce taxes on businesses and working families
- The IFS has looked at how much could be brought in and what the options are
- The manifesto ruled out a rise in VAT, but that does not exclude extending the range of goods the tax is applied to
- A commitment has also been made to reduce corporation tax
- Income tax and National Insurance (NI) are the two biggest sources of tax revenue to the government
- The IFS says adding a penny to the basic rate of income tax would raise £4bn, while 1p on all the main rates of NI would bring in nearly £10bn
- Changing the thresholds at which different rates are applied is another option
The government also says economic growth and a "Brexit dividend" will help cover the costs of the increased spending, which will see NHS England's budget increase by £20bn by 2023.
For further details, go to BBC News.