Tax increase mooted to pay for Government’s social care reforms – reports

A tax hike is planned to fund the government’s long-awaited social reforms, reports the The times and the Daily telegraph.

The newspapers said plans could be released as early as next week once parliament returns from summer recess.

Both suggested that the Social Security increase is the preferred approach to funding the changes, but cabinet disagreements persist over the extent of the increase.

Before the break, Boris Johnson was facing increasing pressure to reveal details of his social welfare reform plan, which he said would be ready by 2019.

In this year’s parliamentary elections, the Conservative Party pledged in its manifesto not to increase income tax, VAT or social security.

The idea of ​​increasing social security, which is likely to meet with criticism, was launched earlier this year.

When asked whether there could be no increase in social security, Minister of Economics Kwasi Kwarteng told Sky News in July: “That’s what the manifesto says, I don’t see how we could increase social security.

“But, you know, things have been very flexible over the past 18 months, we’ve had an unprecedented amount of time, we’ve spent huge sums of money that we never thought possible, and it’s up to the Chancellor and the Treasury, and” them broader government to adopt a budget. “

The Prime Minister, Chancellor Rishi Sunak and Health Minister Sajid Javid are the three main actors in the decision.

The Times report indicated that Mr Javid was pushing for a 2% hike to fully fund the plan, but Mr Sunak was against a hike of more than 1%.

The Daily Telegraph, meanwhile, said number 10 is in favor of a one percentage point hike, but the Treasury Department is pushing to go higher.

Munira Wilson, Liberal Democrats spokesperson on health and social affairs, said in a statement that Mr Javid’s 2% increase was “unfair and unjust”.

“Sajid Javid is burdening the same people hardest hit by the pandemic, and Boris Johnson today broke his manifest promise not to raise taxes,” she said.

“Has it really taken all this time to make the decision to rip off the people who can least afford to bear the burden of welfare?”

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