Financial Times FT.com

Blair rejects NI rise for NHS

By James Blitz and Ben Hall

Published: May 3 2005 22:03 | Last updated: May 3 2005 22:03

Tony Blair on Tuesday night gave his clearest indication yet that Labour will not raise National Insurance contributions to pay for a boost to health spending in the latter half of this decade if it wins Thursday's general election.

As the three main party leaders come to the end of a campaign in which taxation and spending on public services have been central issues, the prime minister said the £8bn annual increase in NI introduced in 2002 “takes care of the catch-up that was needed for the NHS”.

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