Boris Johnson has confirmed his government will impose a manifesto-busting £12bn-a-year package of tax increases from next April to tackle NHS Covid backlogs and overhaul social care. Johnson is set to comfortably win a vote on his plans scheduled for tomorrow evening after Conservative MPs with reservations about the tax increase rallied to his side. Over the last week, as leaks emerged about what was planned, many Tories spoke out about the proposals - either in unattributable comments to journalists, or in interviews. The Tory MP Stephen McPartland said this afternoon that, given what he knows at the moment, he could not back the plan.
But even McPartland has not said he will vote against the plan tomorrow, and the rebellion expected by journalists has fizzled out. The PM’s decision to link the national insurance hike not just to social care, but to rescuing the NHS, seems to have had a significant impact. (See 3.30pm.) Sajid Javid, the health secretary, has admitted that it may take longer than three years to clear the backlog for NHS operations. The government has said that over the next three years the bulk of the £36bn raised over that period by the new tax will go to the NHS, to help it recover from Covid. (See 12.50pm.) At a news conference in Downing Street, Javid said that over time more of the money would go to social care and less to the NHS. But he could not give details of how the money would be allocated over time and, when asked if the backlog would be cleared in three years, he said: “We’re going to try and tackle as much of the backlog as we can.” This is from my colleague Peter Walker.
And this is from Sky’s Kate McCann.
Johnson has said that he does not want any more tax rises this parliament - but he has refused to rule them out. (See 4.39pm.) Rishi Sunak, the chancellor, has said the tax increase is required because today’s decision means there is a “permanent new role for the government” that needs to be funded. (See 4.14pm.) The Institute for Fiscal Studies says the decision has taken the UK tax burden to its highest-ever sustained level. (See 2.04pm.) Johnson has refused to rule out holding a reshuffle later this week. Here is LBC’s Matthew Thompson on what this might mean.
Thérèse Coffey, the work and pensions secretary, has announced the triple lock on the state pension will be temporarily suspended next year, to avoid the government having to hike payments by 8%. Sunak has given the date of 27 October for his autumn budget, announcing plans to support public services and revive the economy with £140bn of extra spending.