We have taken decisions others avoided
Last week the Prime Minister, Chancellor and Health Secretary set out plans to raise on average £12 billion per year on our health and social care system across the whole of the UK. This cash will ensure we have the resources to tackle the NHS backlog and address the crisis in social care which has been shirked by generations of politicians.
We cannot spend money we don’t have and with over £400 billion spent on support for jobs and livelihoods throughout the pandemic through furlough, increases in social security, grants for businesses, Kickstart and so much more. We have got to look at a sustainable way to pay for these improvements. Some say we can simply borrow the money and hope that things will be alright. However, no responsible government could propose such a plan when debt to GDP is forecasted to surpass 100%.
So, the Government is taking the decision to increase National Insurance contributions in order to pay for this significant bill. This is a difficult decision – it breaks a manifesto commitment. But a catastrophic global pandemic was also not in any manifesto. We need to emerge from the pandemic with an NHS that bounces back, and a social care system reformed to alleviate the age-old concerns of the elderly paying too much for care.
A 1.25% per cent levy based on National Insurance Contributions is the fairest and most progressive approach that will raise the £12 billion required. The levy will apply to those over the state pension age, and an equivalent increase in rates of dividend tax will take place to ensure fairness.
The money raised will ensure the NHS is at 110% capacity with 30% more elective patients treated by 2024. It will ensure there’s a cap on the cost of care.
This is a tough decision, but a right one to ensure our NHS gets back on its feet and our social care system gets the sustainable long-term plan that’s been needed for so many years.
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