Ministers say tax rises are ‘right’

RISHI SUNAK and Sajid Javid have insisted that implementing the first ever dedicated Health and Social Care Levy is the “right” thing to do.

Expected to raise £17billion per year for the Treasury, the levy will add 1.25 percentage points to National Insurance paid by employees, and the same again on their employers.

The Health and Social Care Secretary said the money was “vital” to clear the backlog caused by the pandemic, reform the adult social care system and deliver “millions more scans and operations”. Mr Javid added: “This critical investment in our nation’s future will be paid for by those with the broadest shoulders, whilst those on low and middle incomes are protected.”

Mr Sunak, the Chancellor, said that investing in health and social care was a “top priority” and it had to be funded in a “responsible and sustainable way”.

Workers earning between £9,568 and £52,270 currently pay 12pc in National Insurance contributions. This will rise to 13.25pc in April, but from July the earnings threshold will be £12,500. Earnings over £52,270 will be taxed at 3.25pc from April, up from 2pc.

Over the next three years, £36billion will be invested in the health and social care to help reduce patient waiting times and speed up diagnoses.