Fairness, equity concerns, government efficiency and spending issues key takeaways from NHS Levy consultation

Treasury has published a breakdown of the responses to the consultation online

A 'notable segment' of respondents to a government consultation rejected the idea of a proposed NHS levy.

That's from the treasury minister, who has published a breakdown of the responses to the consultation online.

The plans were scrapped in September, with Alex Allinson saying the consultation was useful in clarifying public thinking.

The NHS Levy consultation launched on 27 March 2025 and closed on 18 June 2025; 3,809 responses were received, 23 of which were from organisations.

The published document now reveals that those in opposition cited 'concerns about perceived government inefficiency and the adequacy of existing tax systems'. 

Many 'called for system reform, cost cutting from healthcare management and the wider public service, or increasing income tax instead'.

Whilst the consultation did not include a question on overall agreement with the levy, Treasury says: "It was clear from the consultation that many responses were based on the assumption the levy would be introduced despite the fact they did not agree with the overall principle."

Key conclusions from the responses included: 

• Only 21 percent of respondents agreed that the levy should only apply to individuals who are classed as resident for tax purposes
• A large number of comments discussed the fairness of the levy, including its possible impact on vulnerable groups, pensioners, and low-income individuals, and advocated for exemptions or alternative taxation methods, whilst a similarly large number expressed general dissatisfaction with government performance in general
• Many called for reforms and better financial accountability before implementing a levy
• There were concerns about the broader implications of the levy including potential negative consequences such as discouraging young residents, reducing the island's attractiveness, and increasing administrative burdens
• Over 60 percent of respondents agreed that there should be a “Levy Free” amount similar to the current Income Tax personal allowance
• A significant portion of comments which answered ‘higher’ expressed outright opposition to the introduction of any new levy, viewing it as an unnecessary or unfair additional tax
• A recurring theme was the recommendation that any levy, if introduced, should primarily target high earners, ultra-high net worth individuals, and those benefiting from tax caps or with significant assets

You can find the response document in full HERE.