Lib Dem panel proposes new tax for embattled NHS

An expert panel, set up by the Liberal Democrats, has proposed a new ring-fenced tax to fund the NHS and social care. The panel also suggested a real terms funding increase of £4 billion in 2018-19 and further real terms increases of £2.5 billion in each of the following two years, to cover the inflation.

The 10-member panel of health experts in their report, titled Health and Social Care: Delivering a Secure Funding Future, suggested an increase in income tax as a short-term measure to bridge the NHS funding gap. The report, however, argues for a single ring-fenced tax to replace National Insurance in the long-term.

Liberal Democrats’ earlier position was to earmark 1 percent in income tax to help fund the NHS.

Embattled NHS

With hospitals are facing severe resource crunch for months, the future of NHS funding is a topic of hot debate. There are 40,000 vacant nurse posts in England, with 27 percent more nurses and midwives leaving the job between 2016 and 2017 than joining, pointed out an AFP report.

The issue is limiting the day-to-day functioning of the hospitals with the outbreak of winter flu. As per the figures from Public Health England, 231 persons have died after contracting flu in the UK till February 1. More than 50,000 non-urgent operations were postponed last month.

Thousands of people marched through central London on Saturday in support of NHS, demanding the government to pump more money and roll back the influence of the private sector in the public-funded service.

Department of Health and Social Care maintains that NHS funding "is at a record high," with an extra £2.8bn allocated in the Budget. This is on top of the additional £2bn already provided for social care over the next three years and an additional £437m of funding for winter, said a spokesperson to BBC.

Other Recommendations

The report recommended reinstating the cap on the costs of adult social care. The government, in December, has scrapped proposals to put a cap on the costs paid by individuals at £72,500. The panel argues for scrapping the total exemption from National Insurance Contributions for people who work beyond the age of 65.

The report suggests the creation of an Office for Budget Responsibility for Health, incentives to encourage people to save more towards adult social care and additional revenue for local authorities to invest in public health, among other recommendations.