Michael Burton 11 November 2020

Think tank calls for new health and social care tax

Think tank calls for new health and social care tax image

A new health and social care tax raising £17bn should be the centrepiece of sweeping tax increases to raise £40bn a year, according to a new report from think-tank the Resolution Foundation.

The report proposed a 4% flat-rate health and social care levy paid above £12,500 that would apply to all forms of income, including capital gains, and to most people, including pensioners.

As this would be coupled with a 3% cut in national insurance contributions (NI) employees on incomes below £19,500 would be better off.

Some £17bn would be raised, with £6bn set aside for social care, and in the long run it could replace NI altogether.

The report read: ‘This approach would deliver a large fraction of the necessary consolidation in a highly progressive way and support broader national challenges that have been put into stark relief by the pandemic.’

It said council tax should be replaced by a new property tax based on up-to-date valuations, with a supplement of 1% on properties over £2m raising £1.4bn.

The report argued that ‘fiscal consolidation’ of £40bn annually should only begin in 2024/25 and should be achieved through tax rises rather than public spending cuts as the latter is less practical after a decade of austerity.

It added: ‘There is a consensus that cutting government spending has a larger negative impact on the economy than increasing taxes.’

Tackling mistrust about vaccines image

Tackling mistrust about vaccines

Dr Justin Varney looks at how Birmingham is working to tackle the ‘layers upon layers of mistrust’ among ethnic minority communities that is ‘now playing out in vaccine hesitancy’.
SIGN UP
For your free daily news bulletin
Highways jobs

Greater Cambridge Partnership Head of Innovation

Cambridgeshire County Council
£70,026 - £75,644
The Greater Cambridge Partnership (GCP) is responsible for transforming Greater Cambridge through a City Deal.. Cambridgeshire
Recuriter: Cambridgeshire County Council

Head of Service - Performance, Projects and Intelligence

Sheffield City Council
£60,344 - £64,765 per annum
An exciting opportunity has arisen to join the Strategy and Commissioning team in the People portfolio. Sheffield
Recuriter: Sheffield City Council

Residential Worker - The Maples, Harlow

Essex County Council
£20604 - £26801 per annum + + 6% allowance & Possible Ovetime
Residential Worker - The MaplesPermanent, Full Time£20,604 to £26,801 per annumLocation
Recuriter: Essex County Council

Estate Services Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£32,556.79 per annum
The role of an estate services officer will provide candidates with an important role within... London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Social Worker Level 1

Royal Borough of Greenwich
£34.884 - £37.722
You will be a social worker who has had experience or enthusiasm to work with older people with mental health needs. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue