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Burnham hints at new taxes in UK for social reform

UK Prime Minister Andy Burnham has hinted at potential new taxes to fund a reformed social care system in England. Burnham confirmed his intention to introduce levies, with the aim of making care for the elderly and infirm universally free at the point of use, similar to NHS principles. He acknowledged that these new taxes may be necessary, stating "Nothing is off the table at this moment in time."

Burnham dismissed estimates from The Health Foundation, which suggested the cost of free social care could reach £18 billion annually, arguing that it would increase government expenditure by around 50%. However, he emphasized that he expects everyone to contribute to the cost of the policy.

Speaking at the Labour Party's annual conference in Liverpool, Burnham pledged to provide more details in the coming days, outlining a comprehensive plan ahead of the next general election, which must be held before August 2029. He reiterated Labour's commitment not to increase income tax or employees' national insurance contributions during this period.

Burnham framed the changes to social care as a preventative measure that could reduce overall health spending. He addressed the contentious nature of the policy area, arguing that the UK already has a de-facto dementia tax, as elderly individuals often bear the burden of covering their own costs. Burnham contended that making this cost fairer by spreading it across the population is a necessary step.

Additionally, he declined to support plans to build a third runway at Heathrow Airport, stating it was a matter for local residents.

Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at economictimes.indiatimes.com →

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