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Securing Funds for the Proposed NHS Multi-year Funding: The Feasibility of Using a Hypothecated Tax


  • Timmins, N.


In June 2018 the UK Government announced an increase of 3.4% per annum in spending on the NHS in England for each of three years. It indicated that taxes will rise to pay for this. Debate has increased as to whether a separate (hypothecated) tax should be introduced to fund the NHS. The Kings Fund has published this [year]( on the topic. OHE published an academic review sometime [ago]( This OHE publication by Nick Timmins, a senior fellow at the [Institute for Government]( and the [Kings Fund](, sets out arguments in favour and against. It is based on the seminar he gave at OHE in July 2018. The issues he explores include - - The argument that hypothecation will bring greater stability, transparency and public support; - Which tax(es) might be suitable? - Possible distortions in public expenditure that might result; - Dealing with shortfalls and surpluses; - UK experiences of revenue hypothecation in the past, distinguishing soft (non-binding) approaches such as Vehicle Excise Duty, and hard (binding) pots such as National Insurance, neither of which have held. He concludes by quoting a John Appleby [blog]( argues that the key decision is to agree (or not) to spend more money on the NHS. Creating a new tax is a distraction from this.

Suggested Citation

  • Timmins, N., 2018. "Securing Funds for the Proposed NHS Multi-year Funding: The Feasibility of Using a Hypothecated Tax," Seminar Briefings 002074, Office of Health Economics.
  • Handle: RePEc:ohe:sembri:002074

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    JEL classification:

    • I1 - Health, Education, and Welfare - - Health

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