Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

Briferendum Aftermath Series: Brexit may actually prove costly for NHS

One of the main arguments of the Leave campaign was that the Brexit will be beneficial to UK’s National Health Service (NHS). The argument was that the Brexit will save the amount Britain pays to the European Union for accessing the single market. However, data reveals that may not be the case. Britain is supposed to pay £17.9 billion per year to the European Union budget, however, Britain gets a rebate and the amount its pays is £12.9 billion. But a large chunk of that money comes back to the United Kingdom as subsidies and grants. The amount is £4.4 billion. In addition to that, private organizations such as research houses receive some money back, which amounts to £1.4 billion as of latest data available. This brings down the net amount paid to the European budget to £7.1 billion.

Now, even if the UK leaves the European Union, It would still have to contribute to the budget if it wants some access to the single market. Even if it doesn’t pay anything and the amount gets added to the funding of the NHS, it would be just 6 percent increase in the budget.

On the other hand, leaving the European Union would lead to a different kind of cost increase for the NHS. About 130,000 people from the EU, works in NHS and Brexit with tough immigration rule would mean many of them would have to leave the service and the positions would be filled by agency staff, who have higher wages. Many positions are already had to be filled by expensive agency staffs and this is happening at a time when the NHS is already suffering from perilous financial positions.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.