Posted: Fri 3rd Feb 2023

Income tax rise could fund NHS pay rise in Wales, say Plaid Cymru

North Wales news and information
This article is old - Published: Friday, Feb 3rd, 2023

Plaid Cymru have unveiled plans which the party claims would lead to the “first real term pay increase in over a decade” for NHS staff. ‌​‌‌​​​‌‍‌​‌​‌​​​

A wage of £12 per hour as a minimum for care workers, and a package of financial help for those in greatest need are also part of proposals announced by the party. ‌​‌‌​​​‌‍‌​‌​‌​​​

Plaid Cymru leader Adam Price said raising additional revenue by varying the rate of tax would give both health and care workers a fairer pay offer and would signal an “investment” in the NHS. ‌​‌‌​​​‌‍‌​‌​‌​​​

Nurses and ambulance workers are set to stage further industrial action this month amid calls for a fair pay deal and improved working conditions. ‌​‌‌​​​‌‍‌​‌​‌​​​

The Welsh Government have claimed there is “no more money” available to fund the pay rises, with a one-off payment being offered to the unions. ‌​‌‌​​​‌‍‌​‌​‌​​​

First Minister Mark Drakeford and Health Minister Eluned Morgan have also resisted calls to increase income tax. ‌​‌‌​​​‌‍‌​‌​‌​​​

Speaking in the Senedd last month Ms Morgan said the only way to raise the money needed would be to increase the basic rate of tax for households across Wales. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​ ‌​‌‌​​​‌‍‌​‌​‌​​​

She said: ““In Wales, the number of people who pay the additional rate is 9,000. If you put that up by 1p, you’d make £3 million. That’s how much you’d get. So, you’re miles away from the £55 million that you would need to get to a 1 per cent increase. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​ ‌​‌‌​​​‌‍‌​‌​‌​​​

“If you look at the people who earn between £50,000 and £150,000, and you put their income tax up by 1p, you’d get to £33 million. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​ ‌​‌‌​​​‌‍‌​‌​‌​​​

“Again, miles away from the £55 million for 1 per cent. So the only place you’ve got to go to get anywhere near—anywhere near—the 1 per cent, let alone the 17 per cent that the RCN are asking for, is the basic rate taxpayers. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​ ‌​‌‌​​​‌‍‌​‌​‌​​​

“If you raised it by 1p, you’d get to £237 million, so that would be an increase of about 4.5 per cent. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​ ‌​‌‌​​​‌‍‌​‌​‌​​​

“Asking the poorest members in Wales, who are up against it at the moment. That’s your approach; that’s what you want to do.” ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌ ‌​‌‌​​​‌‍‌​‌​‌​​​

However, Plaid Cymru have argued that “those with the broadest shoulders” should contribute more. ‌​‌‌​​​‌‍‌​‌​‌​​​

Ahead of a debate on the Welsh Government’s budget next week, which Plaid Cymru will seek to amend, Adam Price said “Labour cannot in good faith say they are doing everything they can to support health and care workers when they have so far refused to use the tax powers at their disposal. ‌​‌‌​​​‌‍‌​‌​‌​

“Our NHS is in crisis, Workers are on strike, and the Labour Welsh Government is refusing to act. ‌​‌‌​​​‌‍‌​‌​‌​​​

“Thirteen years of Tory cuts and twenty-five years of Labour mismanagement has left our health and care workers demoralised, exhausted and struggling to make ends meet. ‌​‌‌​​​‌‍‌​‌​‌​​​

“Plaid Cymru’s proposals offer a way forward. Using the tax powers we have here in Wales, we could generate an extra £317 million to offer NHS workers fairer pay and provide care workers with £12 an hour as a minimum ‌​‌‌​​​‌‍‌​‌​‌​​​

“Fair pay for nurses will mean fair play for patients and would signal a real investment in our NHS, putting it on a sustainable footing for the future. ‌​‌‌​​​‌‍‌​‌​‌​​” ‌​‌‌​​​‌‍‌​‌​‌​​​



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