Increase in tax rates and price of fuel in the UK had a drastic effect on the NHS in Scotland, as they had to bear a loss of £70 million and were under a threat to close many hospitals thereby creating unemployment in the region. The health panel was under a huge burden because of being imposed with a VAT and National Insurance (NI) along with huge bills of electricity and fuel.

The UK government raised VAT from 17.5%to 20% as of January this year. The minimum National Insurance was raised by £21 per week above indexation in April. Moreover, the price of fuel increased by 2% and electricity increased by 8.9% in November 2010. The Scotland Electricity had declared to raise the gas prices by 19% and electricity by 10% as a result; £300 million of savings had to be generated by the Scotland’s health Panel.

The two NHS Greater Glasgow and Clyde had quitted from certain operations like removal of tonsils, varicose veins and "minor" lumps to deal with a £55m in order to compensate the deficits, which created a simultaneous effect on the NHS. The NHS Glasgow was under a pressure of £16m of extra costs, due to a £6m VAT hike, a £3.5m NI increase and a £6.5m rise in energy costs during 2011-12.