NHS ‘Brexit dividend’ met with scepticism
Theresa May’s extra £20bn a year described as ‘tosh’ by Tory MP
Theresa May’s gift to the NHS of an an extra £20bn a year, funded in part by a “Brexit dividend”, has been met with anger and scepticism by experts, opposition MPs and even some in her own party.
The extra funding “marks a dramatic break with eight years of austerity and follows a difficult battle with the Treasury for more funds”, reports The Independent.
Where will the money come from?
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The PM, who will formally set out the spending plan for the NHS in England today, remained vague about where the extra money would come from, but the Government has hinted it would have to rise taxes and increase borrowing.
The rest of the money will come from what ministers are calling a “Brexit dividend”, by diverting the £9bn the UK currently pays into the EU budget to NHS funding.
“At the moment, as a member of the European Union, every year we spend significant amounts of money on our subscription, if you like, to the EU,” the PM told the BBC’s Andrew Marr yesterday. “When we leave we won’t be doing that. It’s right that we use that money to spend on our priorities and the NHS is our number one priority.”
The Times described the increase as “a victory for Brexiteers Boris Johnson and Michael Gove”, who lobbied vocally in cabinet for a Brexit dividend for the health service, and says it will “enable the prime minister to claim she has fulfilled the controversial pledge of pro-Brexit campaigners to increase NHS spending by £350m a week”.
Do the numbers add up?
May’s decision to fund the increase partly from a Brexit dividend “signals an insistence that the UK will leave the EU next year, and is likely to frustrate pro-Remain MPs and peers pushing for the country to stay within the bloc or keep the closest possible ties” says The Sunday Telegraph.
But the argument Britain could redirect money it currently sends to Brussels after Brexit “contradicts official forecasts, which predict that leaving the EU will weaken the public finances, at least in the short term”, reports The Guardian.
EU contributions until 2022 have already been earmarked, either to keep paying into Brussels budgets or to replace this spending elsewhere says the paper.
The director of the respected Institute for Fiscal Studies, Paul Johnson , told the BBC’s Sunday Politics: “If you look at the arrangement we’ve come to with the European Union in terms of paying our exit bill and you add to that the commitments the government has already made to keep funding farmers so on, there is literally, arithmetically, no money.
He says the Government has accepted that Brexit would swipe £15bn a year from revenues – or £300m a week.
What has been the reaction?
Labour accused May of relying on a "hypothetical" windfall, with shadow chancellor John McDonnell describing the source as a "a magic money forest".
May also faced criticism from within her own party, with Conservative MP Sarah Wollaston, who chairs the Commons health and social care committee, describing the idea of a Brexit dividend as "tosh" and accusing the government of using "populist arguments rather than evidence".
The PM is also under pressure over the amount of the increase which, at 3.4% until 2023-24, is in fact lower than the 3.7% average rise in NHS funding over the past 70 years.
Even so, the handout, which was finalised on Friday after a tense stand-off between the Treasury and the Health Secretary Jeremy Hunt, has "sparked a mutiny" at the heart of government, The Times reports. It says at least six senior cabinet members are demanding more money for police, defence, housing and schools.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Why Man United finally lost patience with ten Hag
Talking Point After another loss United sacked ten Hag in hopes of success in the Champion's League
By The Week UK Published
-
Who are the markets backing in the US election?
Talking Point Speculators are piling in on the Trump trade. A Harris victory would come as a surprise
By The Week UK Published
-
Crossword: November 3, 2024
The Week's daily crossword
By The Week Staff Published
-
What is the next Tory leader up against?
Today's Big Question Kemi Badenoch or Robert Jenrick will have to unify warring factions and win back disillusioned voters – without alienating the centre ground
By Harriet Marsden, The Week UK Published
-
What is Lammy hoping to achieve in China?
Today's Big Question Foreign secretary heads to Beijing as Labour seeks cooperation on global challenges and courts opportunities for trade and investment
By Harriet Marsden, The Week UK Published
-
Is Britain about to 'boil over'?
Today's Big Question A message shared across far-right groups listed more than 30 potential targets for violence in the UK today
By Sorcha Bradley, The Week UK Published
-
UK's Starmer slams 'far-right thuggery' at riots
Speed Read The anti-immigrant violence was spurred by false rumors that the suspect in the Southport knife attack was an immigrant
By Peter Weber, The Week US Published
-
How could J.D. Vance impact the special relationship?
Today's Big Question Trump's hawkish pick for VP said UK is the first 'truly Islamist country' with a nuclear weapon
By Harriet Marsden, The Week UK Published
-
The Tamils stranded on 'secretive' British island in Indian Ocean
Under the Radar Migrants 'unlawfully detained' since 2021 shipwreck on UK-controlled Diego Garcia, site of important US military base
By Harriet Marsden, The Week UK Published
-
Labour's first week in power
In the Spotlight The NHS, prisons and housing are at the top of a to-do list which risks crashing into 'wall of economic reality'
By The Week UK Published
-
Britain's Labour Party wins in a landslide
Speed Read The Conservatives were unseated after 14 years of rule
By Peter Weber, The Week US Published