Newspaper article The Evening Standard (London, England)

More Tax Rises Forecast as Brown Launches New Review of Health Service

Newspaper article The Evening Standard (London, England)

More Tax Rises Forecast as Brown Launches New Review of Health Service

Article excerpt

Byline: JOE MURPHY

A NEW round of tax rises to fund higher health spending was predicted today after Gordon Brown launched a fresh review of the NHS.

The Chancellor has recalled Derek Wanless, the top banker whose previous report heralded the Government's record pound sterling40billion step-up in the health service budget.

Mr Wanless will now write a second report on NHS progress in introducing reforms to make itself more efficient and on the scope for imposing extra changes on managers.

Colleagues believe Mr Brown is seeking to outflank Tony Blair and Health Secretary Alan Milburn by closing off calls for more radical modernisation rather than higher taxation.

Conservatives seized on the move, saying it was a sign that the Treasury is gearing up to admit that taxes on middle Britain will have to rise further just to maintain spending at its present level when the current five-year plan expires in 2007. The NHS spending bonanza lay behind this year's hike in National Insurance, up to 11 per cent on earnings between pound sterling89 and pound sterling595 a week. …

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