The Liberal Vannin Party has branded government plans for a new health tax “half-baked.”
Trying to plug the gap in health funding, the proposed NHS Levy would be a new charge on income, separate from existing income tax, with its own calculation base, rate and ‘levy-free’ amount.
In its response to the government consultation, the party acknowledged the need for increased health and social care funding but called for a full review of Manx Care’s effectiveness first.
It said: “A comprehensive review of how Manx Care is operating since its formation is essential to give confidence that its sizable budget is being managed effectively and that it is delivering the services mandated by government within a defined budgetary framework.”
If thought necessary, following such a review, Manx Care should be scrapped and full responsibility and accountability returned to the Department of Health and Social Care.
Irrational
Despite last year’s income tax rise to 22%, Manx Care has still struggled financially, with the party saying that the reduction to 21% in the latest budget was “irrational, to say the least.”
The party also criticised the proposed levy’s structure, warning that ringfenced taxes “seldom last the test of time.”
“There would be merit if this targeted wealthier individuals, but instead it hits lower earners,” it argued.
The party urged learning from NHS reforms in the UK, particularly expanding community care to reduce pressure on Noble’s Hospital.
“Developing services in Ramsey, then extending to Peel, Castletown and the East, would stop A&E being misused for minor issues,” it said.
Liberal Vannin has also called for better fiscal management, citing overspending on projects like the Liverpool ferry terminal.
It said: “Government must stop commissioning reviews, start making decisions, and be honest about what services we can afford.”
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