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The Economic Times
The Economic Times

UK PM Burnham hints at new taxes in UK for social care reform

UK Prime Minister Andy Burnham has signaled he will set out proposals to introduce new levies to pay for a reformed social care service.

Burnham confirmed he wanted care for the elderly and infirm to operate "on NHS principles," meaning it would be universally free at the point of use like the country's National Health Service. He did not deny that would be paid for with tax increases, saying: "Nothing is off the table at this moment in time."

The UK premier said he rejected estimates from The Health Foundation that suggest the bill for providing free social care across England would add £18 billion a year, to increase current government expenditure by around 50%. But he said he would expect everyone to contribute to the cost of the policy.

Speaking at the start of his party's annual conference in Liverpool, Burnham pledged that he would begin to give more detail in the coming days, saying he would outline a comprehensive plan to voters ahead of the next general election, which has to be held before August 2029. In the interim he pledged to maintain Labour's manifesto commitments not to increase income tax or tax on employees' national insurance contributions.

Burnham characterized the changes to social care as a "preventative" policy which could minimise health spending elsewhere.

Alluding to the contentious nature of the long-ignored policy area, Burnham argued the UK already has a de-facto "dementia tax" because the elderly often have to pay thousands of pounds to cover their own costs. "So the idea that there isn't already a cost is just wrong. It's just making that cost fairer and spreading it across the population," he said.

NO TO HEATHROW PROJECT

Burnham declined to give his backing on Sunday to plans to build a third runway at Heathrow, saying it was a matter for people who live near London's main airport.

His predecessor, Keir Starmer, announced last year it supported Heathrow's expansion proposal, which must undergo a lengthy planning process before construction can begin.

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