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PM Johnson outlines new 1.25% health and social care tax to pay for reforms

A new health and social care tax will be introduced across the UK to pay for reforms to the care sector and NHS funding in England.

Boris Johnson said it would raise £12bn a year, designed to tackle the health backlog caused by the Covid pandemic and to bolster social care.

He accepted the tax broke a manifesto pledge, but said the “global pandemic was in no-one’s manifesto”.

However, Labour leader Sir Keir Starmer said the plan was a “sticking plaster”.

Leaders in social care also warned the money was “nowhere near enough” and would not address current problems.

The tax will begin as a 1.25 percentage point rise in National Insurance from April 2022, paid by both employers and workers, and will then become a separate tax on earned income from 2023 – calculated in the same way as National Insurance and appearing on an employee’s payslip.

Read more at BBC News.

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