UK Prime Minister Boris Johson today announced his administration’s plans to raise tax rates on Tuesday to fund healthcare and reform the country’s social care system.
The Johnson administration has announced to introduce a health and social care levy of 1.25% on income earned across the UK. At the same time, the tax rate on shareholders' dividends will also be increased by the same amount. This will start as an increase in the existing National Insurance rate (current income tax) and become a separate tax on income earned in 2023.
The tax hike will drive an increase of almost £ 36 billion over the next three years based on a report released by the UK administration. The amount of this tax revenue will be channeled to the UK health and social sector.
To realize this plan, it requires the approval of Parliament before the plan can be translated into policy.
On Tuesday, Johnson noted that his administration had to take this difficult step to address the impact of the Covid-19 pandemic. Overall, those who earn more will pay more taxes. At the same time, a tax on dividends is also levied.
In retrospect, in his first speech as prime minister in 2019, Johnson vowed to resolve the crisis in health care. Despite facing much criticism of the administration Johson remained determined to realize his plans.
