A 1% rise in the island’s National Insurance contributions could give our health system an extra £17.8m a year.

The figure was revealed in a written Keys question by Treasury Minister Alfred Cannan.

His answer was in response to a question from Kate Beecroft (Douglas South) who asked how much a 1p rise in the income tax rate and National Insurance rate would raise. Mr Cannan said a 1% rise in the lower 10% tax rate would raise £2.8m. The same increase in the higher 20% tax rate would raise £7.1m.

In respect of National Insurance, an extra 1% on employee contributions to the primary and additional rate of National Insurance would raise £8.9m. If it was applied to employers’ contributions too it would raise £17.8m for health and social care.

The total would easily cover the overspend at Noble’s Hospital. In January Tynwald approval was secured for up to £9.5m. Health Minister David Ashford has previously indicated reform is also needed to ease funding issues.