London: British Prime Minister boris johnsonThe plan to raise taxes for social care has angered many of his own lawmakers, who fear such a clear violation of his election promises shows he is happy to oversee the vast expansion of the state.
In the wake of a fiscal boom over the COVID-19 pandemic, Johnson is now addressing Britain’s creaking social care system, the cost of which will mount as the population ages, while facing several other thorny policy issues.
Johnson wants to raise National Insurance (NS) a tax paid by working people to subsidize the care of pensioners, including wealthy retirees, according to British media.
But many lawmakers in Johnson’s own Conservative Party worry it would harm young, low-income workers and violate his 2019 election guarantee not to raise the NI rate – which still graces the Conservative’s website .
“The purpose of the proposal would be to support the more affluent, but the tax would be paid by the lower income earners. This is unfair,” said a Conservative lawmaker who did not wish to be named. Reuters.
“We should not break serious election promises unless there are very good reasons to do so.”
Like many other Western leaders, Johnson has been faced with demands to spend more on welfare, as the government borrowed up to 14.2% of economic output – a level last seen at the end of World War II. .
The charge over his planned tax hike comes after allegations that Britain was unprepared for Afghanistan’s chaotic collapse, while the country also faces labor shortages and supply chain problems that, along with Brexit- There is also a high Covid-19 mortality rate.
Johnson is due to address parliament on the situation in Afghanistan later on Monday, and the BBC said he would soon announce a new 5.5 billion pounds ($7.6 billion) package for the National Health Service. The details of NI hike are likely to come later, possibly on Tuesday.
‘Taxes and Expenses’
For years, British leaders have been trying to find a way to pay for social care without jeopardizing support by increasing taxes. Johnson said he has plans for social care in 2019.
British ministers are still working out the details, but Johnson was expected to announce an increase of about 1 per cent on the rate of NI paid by workers and their employers, which official estimates showed a year. will raise around £10 billion.
“With regard to our plans for social care, we are committed to establishing a long-term sustainable recovery of this sector and that is what we will do,” Johnson’s spokesman told reporters on Monday. The finance ministry declined to comment.
While Johnson’s vast majority of 80 in parliament means defeat may be unlikely, members of his own cabinet have signaled opposition to the tax hike.
House of Commons leader Jacob Rees-Mogg on Sunday invoked former US President George HW Bush, who has regretted saying “read my lips: no new taxes” during the 1988 election campaign.
“(Voters) remembered those words when President Bush forgot them,” Rees-Mogg wrote in a Sunday Express personal opinion.
Many of Johnson’s lawmakers fear raising the tax will alienate many voters in northern England who supported him in the 2019 election, when he explicitly promised not to raise income taxes, value-added taxes or national insurance. Was.
Biggest profit cut ever
Johnson also promised to maintain the “triple lock” in 2019, which links annual state pensions to inflation, earnings or 2.5% growth, whichever is higher.
Due to a statistical quirk during the pandemic, the official measure of earnings is running around 9% – resulting in bumper payments to pensioners, as the government has stressed the need to tighten the belt. “Given that the average wage level has been skewed by the unprecedented events of the past 18 months, (the finance minister) should temporarily suspend the pay element of the lock,” said Mel Stride, who serves as a member of parliament’s Treasury. Head of the committee.
Johnson faces more widespread resistance to plans to remove a 20-pound per week increase in state benefits, known as universal credit, which was introduced at the height of the pandemic. The move will affect 4.4 million households from mid-October.
“If (the government) goes ahead with this cut, it will be the biggest overnight profit reduction ever,” researchers Torsten Bell, Adam Corlett and Daniel Tomlinson said in a report published Monday by the Resolve Foundation think tank.
“That should give policymakers reason to pause whether it’s a good idea — politically, economically or morally.”
In the wake of a fiscal boom over the COVID-19 pandemic, Johnson is now addressing Britain’s creaking social care system, the cost of which will mount as the population ages, while facing several other thorny policy issues.
Johnson wants to raise National Insurance (NS) a tax paid by working people to subsidize the care of pensioners, including wealthy retirees, according to British media.
But many lawmakers in Johnson’s own Conservative Party worry it would harm young, low-income workers and violate his 2019 election guarantee not to raise the NI rate – which still graces the Conservative’s website .
“The purpose of the proposal would be to support the more affluent, but the tax would be paid by the lower income earners. This is unfair,” said a Conservative lawmaker who did not wish to be named. Reuters.
“We should not break serious election promises unless there are very good reasons to do so.”
Like many other Western leaders, Johnson has been faced with demands to spend more on welfare, as the government borrowed up to 14.2% of economic output – a level last seen at the end of World War II. .
The charge over his planned tax hike comes after allegations that Britain was unprepared for Afghanistan’s chaotic collapse, while the country also faces labor shortages and supply chain problems that, along with Brexit- There is also a high Covid-19 mortality rate.
Johnson is due to address parliament on the situation in Afghanistan later on Monday, and the BBC said he would soon announce a new 5.5 billion pounds ($7.6 billion) package for the National Health Service. The details of NI hike are likely to come later, possibly on Tuesday.
‘Taxes and Expenses’
For years, British leaders have been trying to find a way to pay for social care without jeopardizing support by increasing taxes. Johnson said he has plans for social care in 2019.
British ministers are still working out the details, but Johnson was expected to announce an increase of about 1 per cent on the rate of NI paid by workers and their employers, which official estimates showed a year. will raise around £10 billion.
“With regard to our plans for social care, we are committed to establishing a long-term sustainable recovery of this sector and that is what we will do,” Johnson’s spokesman told reporters on Monday. The finance ministry declined to comment.
While Johnson’s vast majority of 80 in parliament means defeat may be unlikely, members of his own cabinet have signaled opposition to the tax hike.
House of Commons leader Jacob Rees-Mogg on Sunday invoked former US President George HW Bush, who has regretted saying “read my lips: no new taxes” during the 1988 election campaign.
“(Voters) remembered those words when President Bush forgot them,” Rees-Mogg wrote in a Sunday Express personal opinion.
Many of Johnson’s lawmakers fear raising the tax will alienate many voters in northern England who supported him in the 2019 election, when he explicitly promised not to raise income taxes, value-added taxes or national insurance. Was.
Biggest profit cut ever
Johnson also promised to maintain the “triple lock” in 2019, which links annual state pensions to inflation, earnings or 2.5% growth, whichever is higher.
Due to a statistical quirk during the pandemic, the official measure of earnings is running around 9% – resulting in bumper payments to pensioners, as the government has stressed the need to tighten the belt. “Given that the average wage level has been skewed by the unprecedented events of the past 18 months, (the finance minister) should temporarily suspend the pay element of the lock,” said Mel Stride, who serves as a member of parliament’s Treasury. Head of the committee.
Johnson faces more widespread resistance to plans to remove a 20-pound per week increase in state benefits, known as universal credit, which was introduced at the height of the pandemic. The move will affect 4.4 million households from mid-October.
“If (the government) goes ahead with this cut, it will be the biggest overnight profit reduction ever,” researchers Torsten Bell, Adam Corlett and Daniel Tomlinson said in a report published Monday by the Resolve Foundation think tank.
“That should give policymakers reason to pause whether it’s a good idea — politically, economically or morally.”
.