Tax rises needed to tackle the health and social care crisis

The Institute for Fiscal Studies has warned that the £12bn tax rise is only sufficient to fix the immediate shortfall faced by the health service as it emerges from the Covid pandemic. The IFS said that the health and social care levy – set at 1.25% on top of National Insurance, and due to take effect in April – may need to more than double to 3.15% from as soon as 2025 to raise a further £19bn. Concerns have also been raised over the rise to National Insurance Contributions and the burden it would place on business and those on low pay. Despite the complaints, the House of Lords approved the legislation.

 

The Daily Telegraph

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