The debate over future funding for Manx Care and its overspend is rumbling on with Chief Minister Alf Cannan insisting further efficiency savings can be found.

At this week’s House of Keys sitting, former health minister Lawrie Hooper asked whether the organisation is expected to come in on budget while Arbory, Castletown and Malew MHK Justin Moorhouse raised questions about privatisation.

Manx Care bosses have already identified £12m worth of savings for this financial year but it still needs to find between £6m and £8m more.

The arms-length healthcare provider previously put forward suggested a plan to cut frontline services, put off non-urgent off-island procedures and keep Ramsey’s Minor Injuries Unit closed at weekends in order to balance the books.

However, all these proposals were blocked by the Council of Ministers (CoMin) which raised the question where the savings could be made.

Mr Cannan said: ‘Our CoMin position is very clear, we will continue to deliver frontline services to patients, recognising of course the seriousness of the overspend.

‘A number of measures need to be put in place to try and realign the situation given the impact it is having on our long-term position when it comes to our reserves and our financial sustainability into the future. If Manx Care can find efficiencies within that then they should do so.’

But Mr Cannan was light on specifics when asked what further savings could be made and whether there was scope for Manx Care to overspend. He said ‘extra support’ would be provided by Treasury.

In relation to talk of privatisation, Mr Cannan said the government was ‘committed’ to providing healthcare free at the point of delivery.

He also confirmed charging for clinical services had not been explored but he said around 10% of health service provision had been delivered by private companies in the UK which shows the role they can play.

Mr Cannan also said there are elements of the health service where charges apply and any new charges are a matter for the Department of Health and Social Care (DHSC), CoMin and the House of Keys.

Meanwhile, Mr Hooper also asked Treasury Minister Dr Alex Allinson whether the 2% income tax rise would be reversed.

Dr Allinson admitted it is ‘unlikely’ the income tax rise will be replaced with an NHS levy in the budget next year.

He said: ‘This plan is still my intention, but more work is required both within Treasury and the wider government to deliver a more viable and sustainable funding provision.

‘It has become apparent that it is more complicated than initially thought. An NHS levy would effectively be a new tax.

Mr Hooper also asked Dr Allinson when the new levy would be introduced, to which the latter replied by saying the Treasury were ‘still working on the key fundamentals of the necessary legislation.’