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BBC News
07-04-2025
- Health
- BBC News
Medical society slams 'regressive' Manx healthcare tax proposals
Proposals for an Isle of Man healthcare tax would have a "regressive impact on vulnerable people", a group representing medics has Isle of Man Medical Society (IOMMS) has responded to Treasury's plans, out for consultation, to generate more income for the island's new charge would be deducted from people's incomes via the existing tax return system, and is in response to a 14% year-on-year rise in health an IOMMS spokesman said the Treasury's proposals were "neither equitable nor effective". The consultation on the levy follows a commitment by the Treasury minister in 2024 to replace a 2% rise in the higher rate of income tax and ringfence it for tax rate was brought down by 1% to 21% in this 2025-26 financial year, with more money in the annual NHS Allocation from National Insurance contributions making up for the shortfall.A new levy would raise about £8m more than the previous 2% income tax rise had been expected to, the Treasury Alex Allinson previously said a levy "would be a significant help in terms of bridging that healthcare funding gap, which can only increase as we go forward".In response to criticism from the IOMMS, he said he was "grateful" they contributed to the consultation. 'Disproportionate' An IOMMS spokesman said while the group recognised "financial pressures on Manx Care", the levy would have a "regressive impact on vulnerable people".Healthcare spending was "undermined by inefficiencies, governance challenges, and resource mismanagement", he group outlined a number of other concerns, including how it could affect low-income households, pensioners, and people with chronic conditions. It said costs would put "further strain" on emergency care, adding that there had been a rise in emergency attendances of 12% between 2022 and would also be the risk of "eroding public trust", it said, adding that people may feel "penalised" for "systemic inefficiencies".The IOMMS called for Manx Care and the Department of Health and Social Care to abandon its levy plans in favour of the group's own "restructure and reform" Allinson said more than 1,400 people had so far taken part in the survey, which closes on 18 responses were "important" on the future funding of the NHS, he said, to continue "provision of quality healthcare". Read more stories from the Isle of Man on the BBC, watch BBC North West Tonight on BBC iPlayer and follow BBC Isle of Man on Facebook and X.
BBC News
28-03-2025
- Health
- BBC News
NHS levy ensures everyone pays their fair share, minister says
A new levy to pay for healthcare services on the Isle of Man would ensure more residents "pay their fair share" towards the NHS, the treasury minister has said. A consultation on the proposed new charge, which would be a separate tax on income to be ringfenced entirely for healthcare, was launched on Allinson committed to progressing the plans to pay for health services in his 2024-25 budget announcement to help cover a 14% year-on-year rise in said a levy "would be a significant help in terms of bridging that healthcare funding gap, which can only increase as we go forward". The island's personal income tax rate rose from 20% to 22% for the 2024-25 financial year with the increased tax take ringfenced for health. In February, Allinson announced that would be reduced to 21% with more money earmarked for the NHS Allocation for health from National Insurance he said that was still a "temporary" move and committed to bringing the figure back down to 20% in the future if the levy were to be said the move was because the government was "looking at different ways of raising revenue" to fund health was "absolutely right" that funding was fair and that "everyone who uses the NHS pays their fair share going forward". 'Policy change' The consultation outlines the Treasury's proposals for a healthcare levy, projected to bring in up to £28m of additional support for health said the results of the consultation would be "key" to what happens said he wanted the levy to "be separate from National Insurance and separate from income tax" so people "could see exactly what they were paying towards the NHS every year". When the consultation closes on 18 June, he said they would analyse the results that would "hopefully" move towards a "policy change that could then be properly debated in Tynwald". Read more stories from the Isle of Man on the BBC, watch BBC North West Tonight on BBC iPlayer and follow BBC Isle of Man on Facebook and X.
BBC News
27-03-2025
- Health
- BBC News
New Isle of Man health levy would raise up to £28m
A proposed health and social care levy on the Isle of Man would generate up to £28m a year in additional funding for future services, the Treasury has for the new charge, which would be deducted from people's incomes via the existing tax return system, is in response to a 14% year-on-year rise in health Treasury has launched a consultation on the proposals for the 2% levy, which would also apply to income which is currently not subject to follows a commitment made in 2024 by Treasury Minister Alex Allinson to replace a 2% rise in the higher rate of income tax to be ringfenced for health. The higher tax rate was brought down by 1% to 21% in the 2025-26 financial year in Allinson's latest budget, with additional money in the annual NHS Allocation from National Insurance contributions plugging the Care is currently facing an overspend of up to £20m for the 2024-25 financial year, with approval of that additional funding delayed at the March sitting of 2019 Sir Jonathan Michael report on the future of health services, which led to the creation of Manx Care as an arm's length health care provider, recommended a funding increase of 3.03% on top of the base inflation rate each Treasury said the allocated funding of £387.4 for 2025-26 meant health and social care spending made up 26.6% of overall government expenditure, equating to £4,583 of the £17,249 spent per head of new levy would raise about £8m more than the previous 2% income tax rise had been expected to, it said. New legislation The levy, which would apply regardless of age, would see people taxed on income, including some not currently subject to personal income tax such as lump sums on retirement, war pensions, TT homestay payments, mortgage interest relief, and several social security plan would see an element of earnings "free" from the charge, following the same principle as the personal allowance system, and would be capped at a maximum of £5,000 a year for the highest earners.A new law would have to be passed to allow for the levy to come into force and be ringfenced solely for health care funding, which meant the charge could not be implemented until 2027-28 at the earliest, the treasury document also asks for views on the Immigration Health Surcharge, for those moving to the island to live on the relevant visa, which is currently being progressed by the asks whether that should be extended to all new residents including those from the Common Travel Area, and if it should be paid by everyone or "just on those who are less likely to be economically active".The 12-week consultation on the proposals is available online until 18 June. Read more stories from the Isle of Man on the BBC, watch BBC North West Tonight on BBC iPlayer and follow BBC Isle of Man on Facebook and X.
