“It is only the top 5% that will contribute a little more” – McDonnell’s NHS speech

Below is the full text of John McDonnell’s speech outlining Labour’s plans for the National Health Service.

Thank you for joining us as we come to the end of the first week of this election campaign. It is a week where we have seen the Tories’ true colours: Jacob Rees-Mogg showing unforgivable arrogance in criticising the “common sense” of the Grenfell Tower victims. The Tories resorting to fake news in the fantasy numbers they’ve concocted to criticise our plans. Then the Chancellor refusing to debate me to defend their record and their lies.

We will continue to present our positive vision to tackle climate change and rampant inequality, and we will continue show at every opportunity our comprehensive costed plan to deliver on that vision. 

We know, not just in this campaign, that we can’t trust the Tories on the NHS. Their record is one of running down the NHS and imposing the biggest funding squeeze in its history. A decade of savage cuts to health and care services, privatisation and failure to recruit the nurses we need has left the NHS in crisis.

We all know the lines, we’ve heard them enough times now. They weren’t true then and they aren’t true now. The majority of economists have always agreed that there was another approach the Government could have taken and we have always argued that austerity was a political choice, not an economic necessity. As the Tories have spent money on cutting inheritance tax to disproportionately benefit the rich, they have cut budgets to breaking point while refusing to do anything to tackle the crisis now facing social care.

By 2030, some 2.1 million older people will be needing help but not getting it. As the Tories have spent money cutting capital gains tax accruing to the rich, cuts and privatisation to our NHS has left our country struggling to treat cancer patients safely. As the Tories waste money by failing to properly tackle tax avoidance, support services for young people have been ripped out of their communities.

As the Tories’ cuts to corporation tax have continue to increase dividends for the very richest, more than 1 million NHS patients could face long waits in emergency departments and almost 300,000 patients could also be left waiting on trolleys.

The upcoming winter pressures “look set to be the worst winter the NHS has ever endured” – as doctors on the frontline are confirming what patients are telling us every day – the NHS is in crisis under the Tories.

Labour is the party of the NHS. We are the creators of that jewel in our crown.

Its principle that healthcare is a foundational right afforded to all whatever their circumstance is a cornerstone of our civilised society.We have already committed that Labour will end austerity to bring waiting lists down, stabilise our A&Es and deliver the quality cancer care patients deserve. We will commit to really improving mental health services and make a solemn pledge that no child should ever be denied the mental health care they need. And we believe the right to dignity in retirement is a part of that right to health and well-being at any stage of life. But we want to go further today, and let me say a little more about the economic basis of our plans.

What Jonathan Ashworth will outline in more detail shortly is a package to end the Tory NHS crisis. A £26bn real terms healthcare funding boost from 2018-19 to 2023-24. An annual average 4.3% real terms increase for health spending over the next four years, which will take the total Department of Health and Social Care budget to £178bn in 2023-24. With capital expenditure – so neglected by the Tories – rising to the international average, and boosted by £15bn over five years. 

On each of these fronts, the Tories have offered weak commitments, reflecting their hostility to free public services and the need for us to care for each other. On overall funding between 2019 to 2024, the Conservatives have promised just £20bn in real terms, £6bn more than Theresa May announced in 2018. On annual increases, almost everyone in the room will be familiar with what the Tories have spent in this decade of decay.

For eight years, the NHS budget increases have averaged just 1.4%, that says something about the value they place on caring for those in need. And when you sift through the spin of their most recent promises – which use cash terms figures – they are proposing spending just 3.3% extra a year, compared to our 4.3%. On capital: the NHS capital budget is lower today in real terms than 2010/11. And in recent weeks we have had the scandal of Tory promises for 40 new hospitals turning into just six hospital recalibrations. 

The other dividing line between us and the Tories is that we are responsible enough to commit to where our funding comes from. We have had none of that from the Tories.

Last week, I announced in Liverpool a new Social Transformation Fund – £150bn over five years for the social infrastructure that is the glue that holds our communities together. Our £15bn capital commitment today will come from that Social Transformation Fund and the day-to-day spending increase will be funded by taxing the top 5% at a higher rate of income tax.

To make this clear and cut through the lies and the fake news from the Tories from the last couple of weeks: as I have said before, income tax rates, national insurance, and VAT will not increase for 95%. It is only the top 5% we will ask to pay a little more. (We will reduce the threshold for 45p rates for £80,000 and reintroduce the 50p rate for £125,000.) That is our pledge. It was at the election; I will adhere to it in this election.

For all of us, we are promising better and bigger services – and lower costs. Free prescription charges. An end to hospital parking charges.

It is only the top 5% that will contribute a little more at the end of the tax year. Why? Because their shoulders are broad enough to bear this. And because our society as a whole gains from their contribution. Many of them will be willing and proud to make their contribution to our society and pay their way. I thank them for it.

So in this week where the Tories have shown their true colours, I hope that today you see ours. A commitment to care underpinned by a serious plan that shows we are ready for government.

It’s now my pleasure to hand over to Jonathan Ashworth, who will speak in more detail about this transformative plan.