Labour urges Tories to say how councils will afford national insurance hike

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Shadow Chief Secretary to the Treasury Bridget Phillipson warned that public bodies face an agonising wait to hear the Government’s plans

The Government will not set out its plan for another five weeks

Labour tonight urged the Tories to say how councils and other public sector bodies will afford the hike in national insurance to fund the NHS and social care.

Bosses will shoulder some of the burden for the rise to pump cash into the health service and care sector – triggering questions about where they will find the money.

Boris Johnson will hit workers and employers with a 1.25% tax to fund health and social care – breaking a 2019 Tory manifesto promise not to increase national insurance, income tax or VAT.

Ministers say public organisations must wait more than a month to find out details.

Steve Barclay was Chief Secretary to the Treasury until last week’s reshuffle
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Philip Coburn/Daily Mirror)

Answering a written parliamentary question, Steve Barclay, who was Chief Secretary to the Treasury until last week’s reshuffle, said: “The Government intends to compensate departments and other public sector employers in England at the Spending Review for the increased cost of the Health and Social Care Levy, and provide Barnett consequentials (equivalent funds for Wales, Scotland and Northern Ireland) on this funding to the devolved administrations.

“Further details on the approach to this compensation will be set out at the conclusion of the Spending Review on October 27, 2021.”

Shadow Chief Secretary to the Treasury Bridget Phillipson
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Getty)

But Shadow Chief Secretary to the Treasury Bridget Phillipson fumed: “The Conservatives’ plans fall at the very first hurdle – they won’t fix social care and they are deeply unfair.

“On top of that, it’s clear the Tories haven’t even done the maths to see what the costs to the public sector are, nor how they plan on covering them – with colleges, universities, councils and childcare providers left in the lurch for weeks for an answer on how this latest tax rise will hit them.

The NI hike is eventually aimed at easing the crisis in social care
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Getty Images/iStockphoto)

“The Tories are going after the same people time and time again, and their incompetence is holding Britain back.”

A Treasury spokesman said: “We have taken decisive and historic action to fix the social care crisis that governments have ducked for decades – the Health Care Levy will raise £12billion a year for the NHS and social care.

“Everyone is being asked to contribute, in a fair and progressive way, and everyone, including the public sector, benefits from a healthy workforce.”

ENDS

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