PM calls for 10-year plan to spend cash — NHS funding

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Image Campaigners have pushed for more cash to support the NHS

Prime Minister Theresa May has claimed a "Brexit dividend" will be one of the ways the United Kingdom will pay for flushing more money into the NHS over the next seven years.

The Prime Minister has announced that the NHS in England will receive a funding increase totalling £20.5 billion in real terms by 2023/24.

The Prime Minister said some of the extra money will from Britain's "Brexit dividend" as the United Kingdom stops sending vast sums of money to Brussels after the country quits the EU.

The infamous "We send the European Union £350 million a week: let's fund our NHS instead" slogan plastered on a big red coach by the Leave campaign has always been proven misleading. "Let's fund our NHS instead", said the slogan, infuriating the Remain campaign which bitterly disputed the figures.

Health Secrtary Jeremy Hunt said: "As the Prime Minister announces a historic long-term funding boost and 10-year plan for the health service, we are backing the NHS to show the world what a cutting-edge 21st century healthcare system can look like too".

Speaking in a BBC interview, Mrs May did not elaborate on how the £20bn a year would be funded but told Andrew Marr: "As a country we will be contributing more, a bit more, but also we will have that sum of money that is available from the European Union".

The PM has set aside an additional £1.25 billion each year on top of the settlement to cover specific pensions pressure in order to focus the extra investment on frontline care, a Downing Street spokesman said.

May admitted the "Brexit dividend" would not be enough to generate all the extra health service funds.

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However, May will risk a backlash from Conservative MPs by opening the door to increased borrowing and tax rises to fund the pledge.

She attacked the Cameron government's key health reform - driven through by the former Health Secretary, Lord Lansley - which created clinical commissioning groups to negotiate legal contracts with other parts of the NHS.

Director of the Institute for Fiscal Studies, Paul Johnson, told BBC1's Sunday Politics: “There isnt a Brexit dividend.

But Mr Djanogly has said that while he welcomes more money for the NHS, the so-called Brexit dividend is "nonsense" and taxes will clearly need to rise to support the move.

"As we approach the 70th anniversary of the NHS, effective innovation and change is needed as well as more money".

A £20bn boost - £394m a week - promises to go further than the infamous Brexit bus slogan, which vowed to offer the NHS the £350m a week now being "sent" to the EU. While a 1p increase in all Income Tax rates could raise £7 billion by 2022/23, and analysis by the IFS found this might raise around £5 billion in 2018/19.

Under the plans, the NHS budget, which now stands at £114 billion, will increase by an average of 3.4 percent a year.

"The devil is in the detail and the Tories have form of cutting other budgets when they are passing on consequentials which leaves the Scottish Government less than the health consequentials from the UK Government", she said.

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