Tax Rises On The Way?

Published / Last Updated on 20/02/2002

The Prime Minister, Tony Blair, yesterday gave his biggest hint yet that tax rises could be the way forward for improving the National Health Service.

Speaking yesterday, Mr Blair said: "when we come to this year's Budget we have said that we favour making it clear that if we are raising money from people to pay for a better healthcare system, it should be clear that the money is going to a dedicated healthcare budget".

To finish, he added: "general taxation, rather than social insurance or more NHS charges, was the best way to finance Britain's healthcare".

However, as the Government have said no to rises in the basic or higher rates of income tax, any 'dedicated healthcare budget' is likely to be raised from either indirect taxes or through National Insurance contributions. Or, will there be an about-turn on income tax policy?

The budget is on April 17 this year.  We will keep you posted.

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