Labour NHS plans branded pie in the sky

Shadow health secretary Jonathan Ashworth announced Labour would lift the one per cent cap on salary hikes to give a boost to staff who have been 'undervalued, overworked and underpaid' by the Tory Government.

But Dudley South Conservative MP Mike Wood has poured scorn on the plans, which Labour says it intends to fund by increasing corporation tax.

Mr Wood, who spoke in Parliament yesterday for the first time since he was diagnosed with sepsis earlier this year, told the Express & Star: "This really is pie in the sky economics.

"We used to laugh about the Lib Dems magic penny on income tax, but Labour has taken it a stage further by seemingly insisting that increasing corporation tax can pay for everything.

"It is utterly ludicrous to think they can raise anywhere near enough money to fund the projects they have put forward."

Increases on the NHS wage bill to take account of inflation, which has reached 2.3 per cent but is predicted by some to hit 3 per cent, would costs billions of pounds.

Mr Ashworth said corporation tax, which has been cut to 19 per cent from 28 per cent under the Conservatives, would be used to cover the costs of the increased wage bill.

Labour has pledged to outline new levels of corporation tax in its manifesto, which is due to be published in the coming days.

Mr Ashworth insisted the plans were credible, despite Labour having said it would use corporation tax reforms to fund changes to the adult skills budgets, help for the steel industry, reforms of maintenance grants, the scrapping of university tuition fees and boosts to pensions, social care and the schools budget.

Meanwhile Mr Wood has been told by the Prime Minister that the Department of Health is working on a new sepsis action plan.

"This is great news and will help with the crucial issue of spotting sepsis early," Mr Wood said.