Extra NHS funding will see taxes increase

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The government’s announcement that the NHS is to receive increased funding of £20.5bn per year by the end of five years, has signaled future tax increases.  The funding will be front-loaded with increases of 3.6% in the first two years, which means £4.1bn extra next year. May said this long-term funding commitment means the NHS has the financial security to develop a 10-year plan, to be published later this year.

During the announcement, May made clear that some of the additional money would come increased borrowing and tax rises.  She also made clear that taxpayers will need to contribute ‘a bit more in a fair and balanced way’, saying ‘the government will listen to views about how to do this and the Chancellor will set out further details in due course.’