How else £12bn could be raised for NHS
CUT GOVERNMENT SPENDING
Last September, the Government announced the biggest departmental spending increase this century – £90billion a year after inflation by 202425. If that increase in spending was limited to 3.5 per cent, Matthew Lesh at the Institute of Economic Affairs, said ‘you would pay for the cost of scrapping the national insurance increase while still boosting departmental spending substantially’.
REFORM TAXES
Rolling three unpopular levies – business rates, council tax and stamp duty – into one sensible ‘land value tax’ would get rid of inefficient models ‘that discourage development and are regressive in nature’, said Mr Lesh. He said it could raise additional revenue in a fairer way but the amount would depend on the design.
PURSUE COVID FRAUDSTERS
Treasury officials said they have given up hope of tracking £4.3billion of the £5.8billion which went missing through emergency schemes such as furlough, grants for the self-employed and Eat Out To Help Out. Britain’s tax collector has argued it would cost too much to pursue all of the fraudsters but campaigners say much more could be reclaimed.
LEVY ON THE SUPER-RICH
More than 100 millionaires this week called for wealth taxes on the world’s richest. A wealth tax which would start at 2 per cent for those with more than $5million (£3.7million), and scale up to 5 per cent for billionaires, could generate £43.7billion. But such a tax would have to be mirrored by countries across the world to avoid wealth leaving the UK.
VOLUNTARY TAX
Paying more tax than you have to might sound bizarre. But that is exactly what many wealthy households do in the London borough of Westminster. The City Council gave its top-rate taxpayers the chance to give extra contributions, and in two years it raised £1million.
WINDFALL LEVY
Labour argued this month a windfall tax, which would slap levies on the ‘excess profits’ of North Sea oil companies, could raise £1.2billion for the Government’s coffers. It was rejected by most Tories. There are precedents: Geoffrey Howe levied a £400million windfall tax on banks in 1981, and Gordon Brown boosted the Exchequer by £5.2billion when he played 1 years later, targeting private utilities.