Health levy 'dropped after negative public feedback'

A public consultation on the levy attracted more than 3,800 responses

Plans for a levy to boost funding for health services was scrapped following a "large number of negative responses" from residents, the treasury minister has said.

A public consultation on proposals for a 2% levy, to be deducted from people's incomes through the existing tax return system in a bid to generate £28m a year, received 3,800 responses.

Alex Allinson MHK said "a large number of people were also very keen that government made services more cost effective before they were asked to contribute more to towards them".

While it was right not to progress the levy, long term funding for "a proper universal service that is free at point of delivery" still needed to be addressed, he said.

The treasury minister also said a "notable" proportion of the respondents to the 12-week consultation, which was launched in March, had concerns about the "fairness and equity" of bringing in a levy.

That perspective was also shared by the Isle of Man Medical Society.

The proposals for the charge came about in response to a 14% yearly rise in health costs for health services and rising demand.

The Department of Health and Social Care (DHSC) confirmed last month it was already forecasting a £2.7m deficit in the first quarter of the year, which follows a £15.3m overspend by Manx Care in the previous financial year.

Alex Allinson said further work to find efficiencies in health services would be done by Treasury

Allinson said the results of the survey, which would be published in full at a later date, showed an "overwhelming feeling" that while "people recognised extra funding was needed for health, they didn't think now was the right time to introduce a levy".

He said while it was clear know healthcare funding "needs to increase above and beyond inflation", his department had "not answered the question" as to where the extra funding would be found.

A specialist financial recovery programme, introduced by the Treasury alongside the existing Manx Care cost improvement programme, would include looking at "managing care pathways" and evaluating referrals to UK hospitals and "revalidating waiting lists", he said.

"We now need to try to see how we can provide the most efficient healthcare system possible whilst dealing with the extra demands," he added.