UK PM Boris Johnson Breaks Election Promise, Raises Taxes

British Prime Minister Boris Johnson announced plans Tuesday to break election promises by raising taxes to fund the country’s healthcare and reform the social care system.

The parliament is set to meet on Wednesday to discuss whether Johnson’s tax raise manifesto will be approved into law. Taxes paid by workers and employers would increase about 1.25%, raising almost £36 billion pounds ($50 billion) in the next three years.

"It would be wrong for me to say that we can pay for this recovery without taking the difficult but responsible decisions about how we finance it," Johnson told lawmakers in the House of Commons.

Johnson’s plan to raise taxes was met with backlash from his own party, as it has defended low taxes for decades. From cabinet ministers to backbenchers to small business owners, many are saying Johnson's plan will only hit low-paid workers, young people and smaller businesses, The Guardian reported.

"I accept that this breaks a manifesto commitment which is not something I do lightly, but a global pandemic was in no one's manifesto," Johnson said.

The tax increase is expected to be introduced in April and will begin as an increase on the current tax on earnings known as the National Insurance rate. It will then become its own separate tax on earned income in 2023, CNBC reported.

“Some will ask why we don’t increase income tax or capital gains tax instead. Income tax isn’t paid by businesses, so the whole burden would fall on individuals, roughly doubling the amount that the basic taxpayer could expect to pay. And the total revenue from capital gains tax amounts to less than £9 billion this year,” Johnson said.

“Instead, our new levy will share the cost between individuals and businesses, and everyone will contribute according to their means. Those who earn more will pay more. And because we’re also increasing dividends tax rates, we will be asking better-off business owners and investors to make a fair contribution, too. In fact, the highest-earning 14% will pay around half the revenues,” he added.

According to Reuters, health costs are projected to double as the population ages over the next two decades.

The announced plan will help reform the current social care system that requires people who earn more than £23,250 to pay for their own care. The reform is expected to limit how much an individual has to pay for care during their lifetime.

As the U.K. continues to fight COVID-19 and cases dramatically spike, Johnson's 1.25% tax increase could aid with the recovery of the nation's health care system.