Great Britain requires £20 billion in additional funding for the NHS but the source will remain a mystery.
British Prime Minister Theresa May has opted not to say which taxes will be covering that NHS bill.
NHS Boost Funding
Theresa May has refused to reveal which tax would be increased to pay the NHS boost’s annual £20 million increase. May has been heavily criticized for this decision as well as for the “Brexit dividend” she has stated will partially pay for the boost.
The P.M. has admitted that tax increases will be necessary to pay for the NHS increases. However, despite the fact that she was pressed for further details, she gave none. All she was willing to say was that “we will be contributing more as a country.”
Expert and MP Criticism
At the same time, a senior Tory MP joined by independent experts have dismissed the Prime Minister’s claim that the government would have the additional funding they require as a result of Brexit.
Tory Commons Health Committee chair, Sarah Wollaston tweeted “Don’t even begin to swallow any rubbish that this will be some Brexit bonanza.” She added: “In reality the tax rises & borrowing will need to be higher as a result.”
Institute for Fiscal Studies (IFS) head Paul Johnson said that the British government had accepted that it would need to cut into £300 million per week – or £15 billion per year – from revenues.
Moreover, the divorce bill in combination with commitments for replacing key funding from Brussels would already use the returning E.U. contributions from next year through 2022.
“There is no Brexit dividend,” said Johnson.
“In Due Course”
“The chancellor will announce the details in due course,” said Prime Minister May. “There are many aspects that will change over the next few months potentially. We will be looking at economic growth and at other issues.”
Indeed, Chancellor Philip Hammond’s decision is expected to be in favor of “stealth taxes.” As such, the idea will be to either delay or stop promises for increasing income tax thresholds.
However, Johnson cautioned that it would not even approach the needed amount for the NHS boost. He stated that it would need “more than a couple of pence” added to income tax. He also pointed out that “£20bn is a big number.”