12 July 2002
Kennedy told the conference on July 4 that the tax should be collected from National Insurance contributions and kept separate from central Treasury coffers. NI would be the most appropriate channel for the tax as a proportion of it already goes directly to the NHS.
An earmarked tax would counteract suspicions that extra funding promised for public services often 'mysteriously disappears'. Its transparency would make the public more willing to pay and would help to restore faith in the political process.
'Such a tax should be fair and transparent: it would then provide greater accountability and engender trust. Above all, it would ensure the Treasury could no longer fiddle NHS budgets at the expense of both patients and taxpayers,' he said.
Kennedy also argued for local authorities to be given a greater role in running the health service in their areas.
'Why shouldn't democratically elected local representatives run the health service for local people on the basis of advice from professional people, in the same way that you currently commission social services care?' he said. 'And local government could have control of the funding: no top-slicing, no government pots, no bidding contests.'
But he made it clear that he considered the NHS a 'special case' and would not extend the dedicated taxes to other public services.
Kennedy also said authorities should be able to set employees' terms and conditions in response to local conditions, with minimum terms being protected by a 'floor' below which pay could not fall.
PFjul2002
