Possible tax rises

Posted on 12 Feb 2014
Share Blog Post
PM set to back tax to cover social care costsBoris Johnson is reportedly backing proposals for a new tax to pay for reforms to Britain’s social care system. A Government source has told the Times that the Prime Minister is “comfortable with some sort of tax” to fund universal social care, a move that could help reduce the burden on families. The policy is also likely to include a cap on the amount people have to pay towards their own care. The Times says that the cost of any reform could exceed £10bn and suggests Chancellor Rishi Sunak wants the PM to set out a funding mechanism alongside the policy. While a dedicated social care levy is among options that have been proposed, there is said to be concern over a new tax, with officials believing it risks breaking a manifesto pledge not to raise income tax, national insurance or VAT. Some cabinet ministers believe that unless a wealth tax is introduced, any levy would be an income-tax rise. A minister who has voiced concern said: “We surely don’t want to just borrow more and more to pay for this … So it would mean a broad-based tax, and because of our manifesto that is a problem.” The Times looks at the options open to policymakers, suggesting: an income tax increase; a “social care levy” on income; an over-40s tax; pensioner taxes that could see them paying national insurance and having some benefits means-tested; and an estate tax.

View more blog posts

SME lending increases
Posted on 19 Jun 2024
SME lending increases
read more
More tax awaits us
Posted on 12 Jun 2024
More tax awaits us
read more
High tax Britain
Posted on 05 Jun 2024
High tax Britain
read more
Biggest tax freeze in history
Posted on 29 May 2024
Biggest tax freeze in history
read more
Back To Top
01604 660661