This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/health-44516123
The article has changed 13 times. There is an RSS feed of changes available.
Version 9 | Version 10 |
---|---|
Tax rise to pay for NHS boost - PM | Tax rise to pay for NHS boost - PM |
(about 1 hour later) | |
Tax rises will be needed to pay for the boost in NHS funding announced by the government, the prime minister says. | Tax rises will be needed to pay for the boost in NHS funding announced by the government, the prime minister says. |
Theresa May conceded the public would pay more, but promised this would be done in a "fair and balanced" way. | Theresa May conceded the public would pay more, but promised this would be done in a "fair and balanced" way. |
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. | 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. |
Labour's John McDonnell called the funding model "not credible". | Labour's John McDonnell called the funding model "not credible". |
He - and others - have been critical about whether there will be the savings from Brexit that ministers are claiming. | He - and others - have been critical about whether there will be the savings from Brexit that ministers are claiming. |
But in a speech in London, Mrs May insisted it would free up money. | But in a speech in London, Mrs May insisted it would free up money. |
"Some of the extra funding I am promising will come from using the money we will no longer spend on our annual membership subscription to the European Union after we have left." | |
However, she added that "taxpayers will have to contribute a bit more in a fair and balanced way to support the NHS we all use". | However, she added that "taxpayers will have to contribute a bit more in a fair and balanced way to support the NHS we all use". |
In return, Mrs May said the NHS had to play its part to ensure "every penny is well spent". | In return, Mrs May said the NHS had to play its part to ensure "every penny is well spent". |
She has asked NHS England boss Simon Stevens to work with senior doctors to come up with a 10-year plan, looking at productivity, staffing and key areas such as mental health and cancer survival. | She has asked NHS England boss Simon Stevens to work with senior doctors to come up with a 10-year plan, looking at productivity, staffing and key areas such as mental health and cancer survival. |
"It must be a plan that tackles waste, reduces bureaucracy and eliminates unacceptable variation," Mrs May said. | "It must be a plan that tackles waste, reduces bureaucracy and eliminates unacceptable variation," Mrs May said. |
What is the funding plan? | What is the funding plan? |
At the weekend, the government announced the NHS England budget would increase by 3.4% a year on average over the next five years. | At the weekend, the government announced the NHS England budget would increase by 3.4% a year on average over the next five years. |
That means by 2023 the budget will be £20bn higher than it is now, once inflation is taken into account. | That means by 2023 the budget will be £20bn higher than it is now, once inflation is taken into account. |
Currently, NHS England spends £114bn a year. | Currently, NHS England spends £114bn a year. |
But the plan does not include other parts of the wider health budget, such as training, stop-smoking clinics and other preventative services, so the overall "health" increase might be lower than 3.4%. | But the plan does not include other parts of the wider health budget, such as training, stop-smoking clinics and other preventative services, so the overall "health" increase might be lower than 3.4%. |
The average annual rise since the foundation of the NHS in 1948 is 3.7%. | The average annual rise since the foundation of the NHS in 1948 is 3.7%. |
The plan also means more money will be given to the rest of the UK - about £4bn - although it will be up to the Welsh and Scottish governments to decide how that is spent. | |
How is it being funded? | How is it being funded? |
Health Secretary Jeremy Hunt said the boost in funding was agreed with the Treasury on the basis it would come from three sources - Brexit, economic growth and the taxation system. | Health Secretary Jeremy Hunt said the boost in funding was agreed with the Treasury on the basis it would come from three sources - Brexit, economic growth and the taxation system. |
Like the prime minister, Mr Hunt did not spell out what that could mean for taxes. | |
Economic growth would mean the size of the public purse would grow, which leaves more for public services. | |
Referring to Brexit, Mr Hunt the savings "won't be anything like enough." | |
In fact, some have questioned the very idea of a "Brexit dividend". | |
The Conservative chair of the Commons' Health and Social Care Committee, Sarah Wollaston, said the concept was "tosh". | |
And Paul Johnson, director of economic think-tank the Institute for Fiscal Studies (IFS), said the only way the rise could be paid for was by an increase in taxes. | And Paul Johnson, director of economic think-tank the Institute for Fiscal Studies (IFS), said the only way the rise could be paid for was by an increase in taxes. |
He said the financial settlement with the EU, plus the UK's commitments to replace EU funding, "already uses up all of our EU contributions" for the next few years. | He said the financial settlement with the EU, plus the UK's commitments to replace EU funding, "already uses up all of our EU contributions" for the next few years. |
Analysis: By Hugh Pym, BBC health editor | Analysis: By Hugh Pym, BBC health editor |
It was a significant funding announcement - few at senior levels in the NHS in England disagree with that. | It was a significant funding announcement - few at senior levels in the NHS in England disagree with that. |
But as the dust settles after the weekend, several unanswered questions are still hanging in the air. | But as the dust settles after the weekend, several unanswered questions are still hanging in the air. |
What about the areas of health which are not covered? What about investment in hospital buildings and equipment? How will it be paid for? | What about the areas of health which are not covered? What about investment in hospital buildings and equipment? How will it be paid for? |
Read more from Hugh | Read more from Hugh |
Tax rises: The options | Tax rises: The options |
Ministers say there will be more details in the Budget in the autumn. | |
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 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. | 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. | A commitment has also been made to reduce corporation tax. |
Income tax and National Insurance are the two biggest sources of tax revenue to the government. | Income tax and National Insurance 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. | 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. | Changing the thresholds at which different rates are applied is another option. |
The 10-year plan for the NHS | The 10-year plan for the NHS |
Work on the plan will get under way almost immediately, with final proposals expected towards the end of the year. | Work on the plan will get under way almost immediately, with final proposals expected towards the end of the year. |
Four main areas of the NHS will be looked at: | Four main areas of the NHS will be looked at: |
The plan will build on the five-year strategy Mr Stevens set out in 2015. | The plan will build on the five-year strategy Mr Stevens set out in 2015. |
A big part of that was shifting care out of hospitals and into the community. | A big part of that was shifting care out of hospitals and into the community. |
Mrs May is known to be keen to see a specific stress on mental health and improving cancer survival rates this time. | Mrs May is known to be keen to see a specific stress on mental health and improving cancer survival rates this time. |
In her speech on Monday, the PM recalled her own reliance on the NHS for help when she was diagnosed with type one diabetes, saying: "I would not be doing the job I am doing today without that support." | In her speech on Monday, the PM recalled her own reliance on the NHS for help when she was diagnosed with type one diabetes, saying: "I would not be doing the job I am doing today without that support." |
Meanwhile, councils have questioned why the funding announcement did not also include more money for social care and public health, which covers everything from stop smoking services to obesity prevention. | Meanwhile, councils have questioned why the funding announcement did not also include more money for social care and public health, which covers everything from stop smoking services to obesity prevention. |
Both are considered essential to the sustainability of the NHS, but the increase announced only applied to front-line NHS services such as hospitals, GPs and mental health care. | Both are considered essential to the sustainability of the NHS, but the increase announced only applied to front-line NHS services such as hospitals, GPs and mental health care. |
Councillor Izzi Seccombe, of the Local Government Association, said: "Without essential council services, which help people live healthy lives in their own homes and communities, the NHS cannot thrive." | Councillor Izzi Seccombe, of the Local Government Association, said: "Without essential council services, which help people live healthy lives in their own homes and communities, the NHS cannot thrive." |
The government said plans to reform the system will be published in the coming months. | The government said plans to reform the system will be published in the coming months. |
Read more from Nick | Read more from Nick |
Follow Nick on Twitter | Follow Nick on Twitter |