Boris Johnson confirms rise in national insurance for health and social care – UK politics live news
Prime minister says 1.25 percentage point rise will be used for the NHS and to help fund social care
- Boris Johnson unveils £12bn-a-year tax rise to pay for NHS and social care
- Nadhim Zahawi ‘not comfortable’ with breaking manifesto promises
These are from the Institute for Fiscal Studies, the tax and spending thinktank.
Today’s announcements will mean higher tax and higher spending, to the tune of around £14 billion per year.
The pandemic is expected to result in a permanent increase in the size of the state – as happened after WW1 and WW2, but not after the global financial crisis. pic.twitter.com/G42DDQc20u
Following a rise in income tax of £8bn and in corporation tax of £17bn in the March Budget – the biggest tax rising Budget since 1993 – the Chancellor has announced a further tax rise of £14bn or 0.6% of national income, raising the tax burden to its highest-ever sustained level. pic.twitter.com/GbpmwnVSXN
We keep saying 1.25% – it is really 2.5%. It is one-and-a-quarter from the employer on every £100 you earn, it is one-and-a-quarter from the employee – you add that up and it is two-and-a-half per cent. It is really a 2.5% tax rise on earnings.
This is £12bn on top of £25bn of tax rises in the budget – this must be the biggest tax rising year in many decades.
These are from Torsten Bell, head of the Resolution Foundation thinktank, on today’s announcement from Johnson.
How do we know this announcement is really about the NHS not more social care. Do the maths:
Total increase in spending over next 3 years = £36bn
Devolved administrations = £6bn
Social care spending increase = £5.4bn
NHS = around £25bn pic.twitter.com/hYz3ln3W7g
What did you get today? Gordon Brown + Andrew Dilnott: big, progressive but sub-optimal tax rises to fund NHS and sort out the mess of the social care means test. A big improvement on where we started, but not the right tax rise or solving the "more social care is needed" problem
PM's huge announcement is kicking off in 10 mins – you'll get immediate analysis in tweet form here, full response doc to follow…
