The consultation proposes the NHS Levy would be a ringfenced income tax to generate revenue for health services subject to a maximum charge of £5,000 individuals and £10,000 for those jointly assessed.

Treasury minister Dr Alex Allinson MHK said: ‘A future Levy could act as additional revenue to support our efforts to fund a reformed NHS, providing effective and efficient services that are free at the point of need.'

The Government said it had launched the proposals as tax revenues were not expected to cover the rising cost of healthcare.

Healthcare spending on the island has grown by an annual average of 14% over the past five years, far outpacing economic growth or the increase in Government revenue.

The Government has increased personal income tax from 20% to 22% for 2024-25 to help pay for healthcare.