News story

3rd December 2001

Local MP Publishes Major Paper On Funding The NHS

Northavon MP Steve Webb has today made an important contribution to the lively debate going on in Government about how to fund the National Health Service. Today (Monday 3rd) sees the publication of an article by the former social policy professor on proposals to ringfence the revenues from National Insurance Contributions to be spent on the NHS. Under the proposals, every penny raised in NICs would be spent on the health service and the public would be able to see a clear link between the taxes they paid and the quality of health service that they received. The ideas are set out in an article in the journal “New Economy”published by the highly influential think-tank, the Institute for Public Policy Research. The
possibility of an earmarked “NHS contribution” is believed to be under active consideration by Health Secretary Alan Milburn, and by Peter Mandelson, a key adviser to the Prime Minister. The Department of Health has already been in touch with Steve Webb to request a copy of the article.

Steve Webb said:

“All the evidence is that people want to know exactly what their taxes are being spent on, especially if politicians are talking about increasing the tax burden. I believe that many people would like to see more investment in the NHS to improve recruitment and retention of doctors and nurses and to reduce waiting times for treatment. If there was a ringfenced “NHS contribution” replacing the present National Insurance system, people could be sure that their taxes were being spent on their own priorities. This is an idea whose time has come and I am pleased to hear that the Government is taking it seriously”.


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