Hypothecated health tax would save the NHS, says senior Cabinet minister

Hypothecated health tax would save the NHS, says senior Cabinet minister

Prime Minister Tony Blair is being urged to introduce a special earmarked health tax to overcome what has been labelled a funding crisis in the NHS.

A senior member of the cabinet has said that a hypothecated tax – set aside specifically for the health service – would be a relatively voter-friendly way of raising extra cash for the NHS, according to reports today.

Cabinet pressure to find a solution follows Mr Blair’s pledge to raise NHS spending up to the level of the European average, a rise of more than £9bn in real terms over five years.

The government has already set a precedent for hypothecation with the windfall tax for helping unemployed people and into work.

Last November chancellor Gordon Brown also promised that real-term increases in road fuel duties would be spent on transport and increases in cigarette taxes would be spent on health.

Fraud measures save NHS tens of millions

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