Former health secretary Alex Neil puts forward 'health tax' proposal

A separate "health tax" should be introduced in Scotland to pay for essential improvements to the NHS and social care system, former health secretary Alex Neil has said.

Doctor
Published 3rd Apr 2017

A separate "health tax" should be introduced in Scotland to pay for essential improvements to the NHS and social care system, former health secretary Alex Neil has said.

He claimed powers should be transferred to Holyrood to allow the Scottish Government to introduce the "deeply controversial" levy which he argued would help convince the public to back tax rises.

The tax is one of several recommendations set out by Mr Neil in a 10-point improvement plan to address the challenges facing the NHS.

Launching the plan in Glasgow, he said: "I support the efforts made by the SNP government to improve the NHS in Scotland and to increase investment in it.

"But much more needs to be done, including the injection of more cash to avoid a long-term crisis of the type we are witnessing south of the border.

"The major challenge facing the NHS is how to keep pace with the rapidly-changing levels and patterns of demands from patients - and how we pay for the improvements.

"In my discussion paper, I concentrate on the problems of health inequalities, preventing avoidable disease, the cost of new medicines and staffing.

"The longer-term NHS issues cannot be swept under the carpet.

"The whole British system is in stress and while efficiency savings are needed, they will not be enough, which is why I float the idea of a separate health tax - deeply controversial but cannot be ignored."

The NHS already accounts for 40% of the Government's current budget - a proportion that cannot be significantly increased without impacting on other areas, Mr Neil said.

"To persuade the public to pay higher taxes to pay for essential improvements to health and social care, it is necessary to consider introducing a hypothecated tax to fund these services," he added.

"That would allow the public to establish a direct correlation between the money they are investing in health and social care with the quality and level of services being provided; and hopefully, thereby, obtain their agreement to higher funding."

Other recommendations include a "long-term, detailed strategy and business plan", covering the period to 2030, measures to prevent ill-health and improved earlier detection of diseases such as cancer.

Mr Neil also advocated increasing the supply of new doctors and nurses by a "substantial number" as well as "urgent measures to address staff shortages in the NHS and social care".

The plan was published by the Options for Scotland think-tank run by former SNP leader Gordon Wilson.

He said: "Alex Neil has done the NHS great service by bringing forward ideas based upon his experience at the sharp end of having been cabinet secretary for health and wellbeing."

Mr Neil served as health secretary from 2012 to 2014 before being moved in a cabinet reshuffle to the post of social justice secretary.

He resigned from government in May 2016 and now sits as a backbencher for Airdrie and Shotts.