Medics in the Isle of Man have criticised Treasury plans to introduce an NHS Levy to help fund health services.
Treasury Minister Dr Alex Allinson last month announced a public consultation on a proposed levy of potentially 2%, separate from income tax, that could be imposed on all residents, irrespective of their age.
It could be charged on all income without any deductions or reliefs, including benefits like Income Support that are not currently taxable.
Dr Allinson said he wanted to create a ‘fair and equitable mechanism to contribute towards health funding’. If given the go-ahead, it would be introduced by 2027-28.
But in its submission to the public consultation, the Isle of Man Medical Society - representing medical professionals across the Isle of Man - urged the government to reject the levy which it branded as ‘regressive’, arguing there are more equitable alternatives to increasing the tax burden.
It said: ‘The Isle of Man is at a crossroads in healthcare financing.
‘The Medical Society believes that sustainable, equitable, and efficient solutions are within reach without imposing a regressive levy that risks deepening inequalities.
‘We are committed to a healthcare system prioritising equity, sustainability, and community wellbeing.
‘While recognising the financial pressures on Manx Care, we oppose the proposed levy due to its regressive impact on vulnerable people and its potential to widen existing inequalities.’
It said a flat-rate healthcare levy would unfairly impact low-income households, pensioners, and individuals with chronic conditions, and that introducing such a charge would erode public trust.
It proposed a ‘robust recovery and reform’ plan which would address what it described as the ‘not fit for purpose’ top heavy management structure.
The organisation should be medically-led, it said, and funds allocated efficiently and under proper accountability, with resources redirected to frontline services and priority given to under-invested areas.
It returned to this theme in its consultation submission.
The medics’ group said: ‘High per capita healthcare spending in the Isle of Man is undermined by inefficiencies, governance challenges, and resource mismanagement.
‘Healthcare expenditure in the Isle of Man is among the highest globally. Yet, outcomes like waiting times lag, suggesting inefficiencies, not funding, are the issue.’
Listing the sources of this inefficiency, it said that Manx Care’s management and administrative overheads comprise an estimated 18% of the budget compared with 12% in the NHS across.
It said the costs of relying on agency staffing are unsustainable and the ‘absence of medically-led oversight undermines strategic priorities, including mental health services’.
The Medical Society proposed management layers by rationalised, a professional executive committee be created and oversight aligned with clinical priorities.
It called on the private patients unit at Noble’s Hospital to be reopened and run as ‘an excellent private healthcare service similar to Jersey’s’.
Dr Allinson has insisted that ‘everything is on the table’ and whether those on benefits should be subject to the levy was ‘up for discussion’. ‘I’ve made no clear decisions about that,’ he said.