The prime minister 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. The cabinet signed up on Tuesday morning to a controversial 1.25 percentage point increase in national insurance contributions, which will be levied on employers and employees.

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Tax on share dividends will also be increased by 1.25 percentage points, in a move expected to raise £600m.

Much of the revenue initially will be devoted to cutting waiting lists in the NHS, with social care receiving only £5.3bn of the £36bn expected to be raised over the next three years. From 2023-24, once HM Revenue’s computer systems have been updated, the NICs increase will be rebadged as a health and social care levy, which will appear as a separate line on payslips

Boris Johnson unveils £12bn-a-year tax rise to pay for NHS and social care ► https://www.theguardian.com/politics/2021/sep/07/boris-johnson-unveils-12bn-a-year-tax-rise-to-pay-for-nhs-and-social-care

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