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Home » UK parliament backs Johnson’s tax hike plan

UK parliament backs Johnson’s tax hike plan

LONDON (Reuters) – British lawmakers backed Prime Minister Boris Johnson’s plan to boost taxes in a parliamentary vote on Wednesday, clearing the best way to direct extra funds into the nation’s creaking well being and social care system.

Boris Johnson wearing a suit and tie: Britain's Prime Minister Johnson, Chancellor of the Exchequer Sunak and Health Secretary Javid give news conference in London

Britain’s Prime Minister Johnson, Chancellor of the Exchequer Sunak and Well being Secretary Javid give information convention in London

Johnson had angered some members of his governing occasion by breaking election guarantees to not improve taxes, and solely set out the complete plan on Tuesday. Regardless of the backlash his occasion, with a working majority of 83, gained the vote 319 to 248.

Below the proposal, the speed of Nationwide Insurance coverage payroll taxes paid by each employees and employers will rise by 1.25 proportion factors, with the identical improve additionally utilized to the tax on shareholder dividends.

It’s anticipated to boost 12 billion kilos ($17 billion) a yr.

The additional funds will go into Britain’s social care system, the place prices are projected to double because the inhabitants ages over the subsequent twenty years.

Video: U.Ok.’s Boris Johnson Pronounces $17 Billion Tax Hike (Bloomberg)

U.Ok.’s Boris Johnson Pronounces $17 Billion Tax Hike



They may even be used to sort out ready lists throughout the state-run Nationwide Well being Service after it directed its sources onto COVID-19 through the pandemic, leaving thousands and thousands of individuals ready months for therapy.

British politicians have tried for years to discover a strategy to pay for social care, although successive Conservative and Labour prime ministers have ducked the difficulty as a result of they feared it could anger voters and their events.

For Johnson, tackling the issue gives a attainable strategy to broaden his home legacy, though critics have mentioned his plan doesn’t go far sufficient. They are saying it is going to additionally unfairly improve the tax burden on working-age British folks.

The vote win does, nonetheless, present some respite for Johnson after his authorities got here in for heavy criticism over its dealing with of Afghanistan. 5 Conservative lawmakers voted in opposition to the plan whereas others abstained.

($1 = 0.7257 kilos)

(Reporting by Kate Holton; Enhancing by Chris Reese and Sandra Maler)