What Could Labour’s NHS Plans Mean for the UK Taxpayer?

The National Health Service (NHS) is one of the UK’s largest employers. It’s also one of its’ most recognisable institutions, running hospitals, ambulances and pharmacies. Next month’s General Election is drawing closer, with the NHS one of the biggest subjects being tackled by all the major parties.

The opposition Labour Party put forward a major funding boost for the NHS. In their manifesto, Labour said that, should they get into power, they will pledge £37bn of funding to the NHS over five years. This amounts to £7.4bn per year, an amount that the NHS would certainly benefit from. Could it impact on the UK taxpayer?

Tax Rise For the Few

To finance the cost of extra NHS funding, Shadow Chancellor John McDonnell has put forward tax rises for the highest earners. Also in Labour’s manifesto, those earning at least £80,000 a year would pay more. Low- and middle-income earners’ taxes would be unaffected, but anyone on over £150,000 per annum would be hit hard.

If, against the odds, Labour win the election, many high earners will pay a few thousand pounds more. Many in the business community will have plenty to fear as far as finance is concerned. To cover the cost of the NHS (and other services) further, a rise in Corporation Tax has been proposed.

A Labour victory would see corporation tax rise to 26%. This would go up by 5% from the current rate for businesses earning over £300,000 in profit. Many companies are up in arms over the party’s proposal.

Healthcare to Take a Hit?

Rising tax bills for companies and high earners is causing some concern amongst the business community. Anyone who is trading with Hantec Markets will need to pay attention to stocks of pharmaceutical firms. Many private companies who supply medicine, medical equipment and tech to the service could find themselves taking a hit.

Labour’s chances of victory seem remote at best. Despite that, even the governing Conservatives are pledging more money for the NHS. Much of their proposed funding pledges are going towards social care, with £8bn earmarked for the NHS and associated services.

Logic dictates that only the Conservatives and Labour have a chance of winning an outright majority on 8th June. Most higher-paid people with an eye on their bank balances would be likely to go with the Tories, but Theresa May’s party has yet to announce how much tax they can expect to pay post-election.

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