Lib Dem U-turn on health service tax

Charles Kennedy today announced a major U-turn on Liberal Democrat plans to fund the NHS.

Mr Kennedy said the party would be dropping its scheme for a dedicated new tax for the health service.

The party agreed three years ago to rename the national insurance system the "NHS Contributor" as a means of pouring more money into new hospitals and services.

Today Mr Kennedy said this would not be featuring in the forthcoming election manifesto. "We are not earmarking it in that way," he said.

Instead, the party would fund the NHS through general taxation, the party's health spokesman Paul Burstow said.

The announcement was made as Mr Kennedy unveiled plans to scrap unfair charges. These include offering free eye and dental checks to every NHS patient.