September 3, 2021

GBP Trader Ready, PM Johnson Will Announce Tax Increase

 UK Prime Minister Boris Johnson is expected to announce a tax increase aimed at paying for the cost of social care for individuals and increasing National Health Service (NHS) funding.

According to the UK Telegraph, PM Johnson will unveil an increase in National Insurance, a type of tax paid to fund government benefits programs next week.

The tax hike is reported to have an impact on about 25 million taxpayers, according to the report.

The prime minister’s office opted for a tax hike of 1%, while the Treasury may look at a higher rate of up to 1.25%, the report added.

In return, the government will reduce the burden by limiting the amount an individual has to pay for the cost of social care over his or her lifetime.

For the record, among PM Johnson’s manifestos during the election campaign in 2019 is that he will not raise income tax rates, value -added tax or National Insurance.

With this latest action, it clearly shows that PM Johnson has broken his promise.

For the NHS, the proceeds from this increase will be used to clear up arrears that have risen since the Covid-19 pandemic hit, according to the UK Telegraph.