CARE TAX

No sooner than the Brexit Deal has been agreed, without the Tory Government doing anything to address the trade deficit that the UK has with the EU, and hence the taxation consequences of that deficit, then the first call for an extra tax has been made. Once again, the British public are to be blackmailed with those in need of social care being held hostage.

Jeremy Hunt, the former Tory health secretary, believes that this is a ‘now or never’ moment, given the support for the NHS and social care sector, to introduce a care levy on the over 40s as exists in Germany and Japan. He said: ‘Both of them, interestingly, introduced a tax surcharge to people over 40, which is only a small amount extra, but as you get older you start to pay a little bit more. And neither have had public pushback for doing that.’

What Jeremy Hunt overlooks, is that Germany and Japan are economically more successful than the UK. Furthermore, the UK has just left the EU and the Tory Government showed no interest at all in the vast, ballooning trade deficit that the UK has with the EU, nor with the potential substantial tax revenues that would be achieved by bringing trade with the EU into balance (see here and here). Instead of taking the difficult decisions needed, the Tories would much prefer to just help themselves to yet more of ordinary people’s money. That is, for them, the less problematic and expedient approach.

Meanwhile, there are reports that a number of Tory backbenchers are hoping to rebel and defeat the Government’s proposal to reduce the foreign aid budget. There is, we are given to believe, unlimited sums of money available to give away to a variety of entities involved in the foreign aid gravy train. After all, the UK is supposed to be a ‘development superpower’.

Not so fast. There should be very determined public pushback on this latest tax-grabbing wheeze. Few members of the general public would share the Tory belief that giving away money on foreign aid is a higher priority than social care. The callous treatment of those in care and nursing homes during the Covid-19 pandemic should not be forgotten. That treatment was not due to a lack of spending on social care.

The Government should secure the tax revenues needed by cutting wasteful expenditure, such as foreign aid, and by running the country properly. We need to eliminate the trade deficit with both the EU and China.