UK Prime Minister Boris Johnson confirmed on Tuesday a controversial 1.25% increase to the National Insurance contributions to fund a reform of the COVID-stricken health and social care systems
LONDON (Pakistan Point News / Sputnik - 07th September, 2021) UK Prime Minister Boris Johnson confirmed on Tuesday a controversial 1.25% increase to the National Insurance contributions to fund a reform of the COVID-stricken health and social care systems.
"From next April we will create a new, UK-wide, 1.25 per cent Health and Social Care Levy on earned income, hypothecated in law to health and social care," Johnson told Parliament.
The prime minister admitted that the move broke the pledge made in the Conservative Party's 2019 election manifesto that no tax hike would be introduced under a Tory government.
"I accept, yes, I accept this breaks a manifesto commitment, which is not something I do lightly. But a global pandemic was in no-one's manifesto," he argued.
According to Johnson, the government will invest 36 billion Pounds ($49.5 billion) in the health and care system over the next three years, with the National Insurance's tax increase contributing 12 billion pounds to the reform.
Reacting to the prime minister's announcement, the leader of the Labour Party, Keir Starmer, said that Johnson was "putting a sticking plaster over gaping wounds" inflicted by his own party.
"He made that commitment on social care before the pandemic, and he said he'd pay for it without raising taxes before the pandemic," Starmer told Parliament.
The government's plan will be debated and voted on Wednesday, as the leader of the House of Commons, Jacob Rees-Mogg, announced.
