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Health Care Thrust Into U.K. Election as Labour Vows Rescue Plan

Health Care Thrust Into U.K. Election as Labour Vows Rescue Plan

(Bloomberg) -- The Labour Party vowed to outspend the ruling Conservatives on the National Health Service if it wins the U.K. general election, promising a 26 billion-pound ($33 billion) “rescue plan” paid for by higher taxes on companies and the rich.

The announcement, unveiled by Shadow Chancellor John McDonnell on Wednesday, thrust the NHS -- one of biggest issues concerning British voters -- into the heart of the campaign for the Dec. 12 vote.

Health Care Thrust Into U.K. Election as Labour Vows Rescue Plan

McDonnell said total Department of Health and Social Care funding would rise by 4.3% a year in real terms under his plans, with NHS England getting 6 billion pounds more by 2024 for day-to-day spending than the 20.5 billion pounds promised by the Conservatives.

The money would cut waiting times and boost mental health services he said, adding there would be an additional 15 billion-pound increase for NHS capital budgets, financed from borrowing.

“The world-class health service we all need and depend on needs proper funding,” McDonnell said in a speech at the Royal Society of Medicine London. “Labour’s policies to tax the richest in society and invest for the future through our Social Transformation Fund mean we will be able to improve millions of lives.”

The Tories, who are leading in opinion polls, hit back, saying any increase in funding would be offset by the “crippling” cost of Labour leader Jeremy Corbyn’s plan to introduce a shorter working week.

In an analysis, the Institute for Fiscal Studies said spending under Labour would rise more quickly than the historic average of 3.6% per year, whereas Conservative plans could see health budgets rise by just 2.9%. Both, however, would be well above the 1.3% average since the financial crisis.

To contact the reporter on this story: Andrew Atkinson in London at a.atkinson@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, David Goodman, Brian Swint

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