Shadow health minister Dr Liam Fox is claiming there would be an insurance dividend if the Government were to expand the range and quality of treatment available under the National Health Service.

Fox belives that if the Government were to guarantee a level of treatment for cardiology and oncology patients, then this would liberate insurers to reduce costs and improve the quality of their own products.

He said: “Abbey National has already indicated to us that it believes it could dramatically reduce premiums on its products by 30% if our Patient's Guarantee Scheme was introduced for cardiology and oncology.”

Fox also called for a greater provision of healthcare through trade unions and employers, which he claims is being hamstrung because of taxation on benefits in kind and the extension of National Insurance.