UK PM Boris Johnson to address Parliament, plans to hike taxes to pay for social care

By Team Newsable | First Published Sep 7, 2021, 4:49 PM IST

Johnson is now tackling Britain's decrepit social care system, whose expenditures will skyrocket as the population ages, following the budgetary spend on the COVID-19 epidemic.

Prime Minister Boris Johnson will address MPs on Tuesday on his proposals to reform Britain's social care system, even though many in his party are outraged that he wants to pay for it by raising taxes, a blatant violation of his election promises. Johnson is now tackling Britain's decrepit social care system, whose expenditures will skyrocket as the population ages, following the budgetary spend on the COVID-19 epidemic. For years, British politicians have struggled to find a means to fund social care without jeopardising support by raising taxes. Johnson stated in 2019 that he has a strategy for social care.

According to British media, Johnson intends to boost the National Insurance (NI) levy paid by about 25 million working people to subsidise seniors' care, especially affluent retirees. Johnson will preside over a cabinet meeting on Tuesday morning before delivering an address to parliament at about 11:30 a.m. GMT.

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Johnson, his finance minister Rishi Sunak, and his health minister Sajid Javid will have a press conference. According to excerpts from his office, Johnson is set to tell parliament in a speech that everyone must act now to ensure the health and care system has the long-term resources it needs to battle COVID and manage backlogs.

Like many other Western presidents, Johnson is under pressure to increase social spending after government borrowing soared to 14.2 per cent of GDP - a level not seen since the end of World War II. Anyone with assets worth more than 23,350 pounds ($32,305) pays for their treatment in full under the existing system. This might result in escalating fees and the total liquidation of someone's assets.

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Johnson's office and the finance ministry have consistently declined to provide specific financing plans. However, British media have claimed that Johnson intends to increase the National Insurance (NI) levy paid by employees and businesses. The government said on Monday that it would put aside an additional 5.4 billion pounds ($7.5 billion) over the next six months to assist the NHS in covering additional costs associated with the COVID-19 epidemic and addressing a massive treatment backlog.

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