Create New NHS Tax, Says Lib Dem Lamb

A new NHS tax should be created and marked on every payslip, the former Liberal Democrat health minister has said.

The plan would also mean local councils would be able to increase taxes if they needed to top up spending on health services in their area.

Creating an NHS tax would mean it could be increased without increasing other taxes and its creation would see a drop in National Insurance and Income Tax contributions.

Research has suggested that the public would be in favour of such a change, party sources have suggested, however, the plans are not official Lib Dem policy and will not be debated by members.

Mr Lamb, who lost out in the party leadership race to Tim Farron, detailed his proposals at the Liberal Democrat conference, which continues in Bournemouth.

He said: "I am very interested in the idea of a dedicated NHS and care contribution - separating it out from the rest of taxation, clearly identified on your payslip.

"And I am really interested in the idea of the right for local areas to raise additional funds for the NHS and care if they choose.

"Why can't my county of Norfolk decide to spend more on vital services for older people, to improve cancer services or for mental health if it chooses?"

Mr Lamb warned that the NHS would collapse without emergency funding.

He said: "I've been in the department. I have seen the books and I am deeply concerned.

"If we carry on regardless, the system will crash. This is not the time for long grass. This is the time for action."

At the conference on Monday, Nick Clegg gave his first major party speech since May's crushing defeat at the General Election which saw the party's MPs slashed from 56 to eight.

He admitted his attempt to put the Liberal Democrats in the centre and promising to give a "head" to Labour and a "heart" to the Tories sounded "too much like a tactic, rather than a place rich in values and conviction".

Mr Clegg said he accepted criticism for that but promised that the party would be the "comeback kid" of British politics.

Speaking to Sky News, Mr Lamb said the Lib Dems had gone from a party that would meet in a large committee room to one that could meet round a table.

However, the party is hailing the 20,000 new members who have joined since May as the start of its fightback.

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