New health tax

Britain starts new era over public finance

TAXATION will rise with the public’s backing in the postcoronavirus world with an annual levy earmarked for the National Health Service, it was predicted this week.

Veteran Tory politician turned political commentator Nick de Bois believes a return to normality will not see the austerity measures imposed after the financial crisis of 2008 when there was a policy of cutbacks in a drive to “balance the books”.

Instead, Nick, the former chief of staff and advisor to Dominic Raab when the First Secretary of State was in charge of the Brexit negotiations, believes there will be a special health tax.

Speaking on the Costa Blanca’s Bay Radio, he said: “It would not surprise me if we end up with a hypothecated health tax; where the money collected from you and me is ring-fenced so it can only go to the NHS.

“The Treasury has always resisted this and argued against it but it would not surprise me, with the clear affection Boris Johnson clearly has for the NHS, which has not been challenged by anyone, that money will be spent on the health service.”

Nick, former MP for Enfield North, said the video posted by the Prime Minister after his release from St Thomas’ Hospital in London had a “huge impact” on the nation. He added: “To me he was speaking from the heart; speaking about the NHS and he nailed it.”

Mr Johnson praised the hospital for the care he received in hospital and made national celebrities of Jenny from New Zealand and Luis from Portugal, the nurses who stood by his bedside ready with oxygen when needed.

NATIONAL

“Suddenly people care more about the plight of the prime minister and what happened to him; it bodes well for the future - he has become a national figure rather than just a party political figure,” said Nick.

He believed the prime minister’s near death experience had made him reflect on his priorities and views. “I think Boris Johnson has a commitment to the NHS, which he has always argued for since Brexit, and is now even more a reality for him.”

Nick said government borrowing was going to jump to pay for its financial package announced to fight the economic downturn of the pandemic - the statistics showing long term damage will be deflected by the predicted start of a recovery in December.

“The slump is bigger than the financial crisis of 2008 but the response will be very different from the crisis, from austerity; which was all about trying to reduce the budget deficit,” he said.

“I can confidently predict that will not happen. It’s a new era and we will pay more taxes to keep it under control - there will not be an attempt to balance the books so quickly.”

Nick said there would be a new political approach and willingness to tax. “The question is how much to help deal with public finance - but can you honestly see this government not finding more money to put into the NHS?

“It is almost a religion. I think you will see a one-off special tax each year; ringfenced for the NHS.”