UK’s Sunak can’t rule out tax hikes to pay for social care

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UK’s Sunak can’t rule out tax hikes to pay for social care
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UK Chancellor says he can’t rule out further tax increases to pay for social care

Government last month announced a tax increase on workers, businesses and shareholders to help rescue the NHS and reform the social care systemRishi Sunak. Picture: REUTERS/STEFAN ROUSSEAU

The Local Government Association has said council taxes might have to rise because of higher costs for looking after the elderly, disabled and long-term sick. Asked whether he could guarantee there won’t be increases after warnings of a potential jump of 9%, Sunak told Sky News “I wouldn’t, I wouldn’t, I can’t, I can’t.”

With the UK tax burden at historically-high levels, the prospect of further increases threatens to eat into the disposable income of Britons at a time when energy and food costs are already mounting and consumer spending is needed to keep the UK’s recovery on track. The disquiet among members of the Tory party - who traditionally favour low taxation - comes after the government last month announced a tax increase on workers, businesses and shareholders to help rescue the National Health Service and reform the “broken” social care system.

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