Brown planning another National Insurance tax grab to fund elderly care plan
Last updated at 8:21 AM on 05th July 2009
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Reforms: Gordon BrownGordon Brown was engulfed in a new row over the parlous state of the country’s public finances last night amid fears he is planning a huge post-Election tax hike.
The Government is looking at imposing a rise in National Insurance contributions after the next Election to help fund the cost of care for the elderly, it was claimed yesterday.
The controversial idea – to spare people from having to sell their homes to cover the cost of care bills in their old age – will be unveiled in a Government blueprint on long-term care for the elderly, reports said.
The NI plan will fuel suspicions that Labour realises it will have no choice but to hike taxes after the next Election to combat soaring public debt.
But last night Vince Cable, the Liberal Democrat Treasury spokesman, condemned the NI plan as ‘an income tax rise by another name’.
He urged the Prime Minister to reduce unnecessary public spending instead by cancelling the renewal of the Trident nuclear deterrent and by reducing generous public-sector pensions.
Health Secretary Andy Burnham will publish a consultation paper called Care And Support later this month, detailing how to reform social care provision.
Estimates suggest that 30per cent of people who have to go into a care home have to pay their own fees.
The average stay in a home is two years, at a cost of about £25,000 a year.
In what has been condemned as a postcode lottery, figures last year showed that in some parts of the country, elderly people are up to 15 times less likely than people in other areas to receive State funding towards their care home fees.
Advanced leaks of the paper this weekend said Ministers were planning to create a national social care ‘pool’, part-funded by an ‘earmarked’ rise in NI contributions, similar to the one introduced by Mr Brown in 2002 to boost NHS spending.
Every worker would contribute but higher earners would pay proportionately more – a move that will appeal to Labour’s grassroots and energise its core vote at the next Election.
Any NI rise would apparently not take effect for some years, although the levy is due to rise by 0.5per cent in 2011 to fill the black hole in public finances.
Last night, Downing Street played down the prospect of a fresh rise in NI contributions, stressing that any tax proposals were a matter for Chancellor Alistair Darling.
No 10 said it would ‘not be speculating’ on the paper, which would contain ‘a range of options and different scenarios’.
Sources close to Mr Burnham suggested that the idea of a NI increase was ‘not a runner’, adding: ‘We are not really considering that.’
They hinted instead that a more likely plan to cover the mounting care costs was the
previously floated idea of a one-off payment by individuals of about £12,000, made either when someone retired or taken out of the person’s estate when he
or she died.
first reply- it’s dawned finally that this faux party of Fabians is anything but for the working man.
More tax and waste, if anybody thinks this or any government is going to ring-fence this payment for what it is meant for they must be dreaming, remember the vehicle licence was introduced for the upkeep of roads, and we all know what they are like.
Mr Brown has run out of money and the only source is us, every Labour government since 1945 has done the same, clout the working class.
- Nite Owl, Ferndown, England., 5/7/2009 3:48
Will the Scots have to pay even though they get free care for the elderly anyway ?
- mike, inverness, 5/7/2009 3:42
…. fears he is planning a huge post-Election tax hike……..
POST ELECTION ?
You have to hand it to old gormless……
He must be the only person in England who thinks that he will still be in charge after the election.
- dave, andover, 5/7/2009 3:38
In reality we are already being robbed of about 75% of what we earn. How much more can he take from us to fund his thieving colleagues in Parliament, Quangoes etc? He should be cutting taxes and stopping their profligacy.
- Paul, Reigate, UK, 5/7/2009 3:30
Brown the Clown at it again. Why can’t he ever tell the real truth. But then of course he is Labour. Roll on the next election.
- Peter Smith, Tauranga, New Zealand, 5/7/2009 3:29
Let’s face it, you can’t tax people who have not got any money and the encouragement by all Governments to live beyond our means has got to be paid for sooner or later, the day of reckoning must come.
- Juan, Saanichton. B. C., 5/7/2009 3:22
The man is in the quicksand and is struggling but he is going deeper.I suggest we get the economy of the country back to Maggie Thatcher’s reign and he should go off to his beloved Africa and do his missionary work.He can do no furtjher harm to this country and its indigenous people other wise we will have a revolution.
- benevolent dictator, Washington,England, 5/7/2009 2:24
It’s about NHI and Income Tax were combined to just TAX. The money is no longer ring fenced as it was supposed to be when the scheme was announced way back in 1948.
Joining the taxes would make administration easier and allow McBroon to sack a few Civil Servants to save some our precious taxes.
The reason McBroon likes the very complicated tax structures he has created is that it is very hard to see what is really going on and any changes he makes are impossible to quantify. The trouble is even he miscalculates the effects of his changes with the removal of the 10% tax band a prime example.
- David, Aberdaron, North Wales, 5/7/2009 2:15
We won’t have to worry because Labour are not going to be in a position to do anything as they will be out on their ear.
- Laurance Allen, Hampstead, London, 5/7/2009 2:12
And these left wingers rioted about the poll “fair” tax! I hav never seen such underhand deceitful tax and spend incompetant government in my life!
- Mike, Stocktonon Tees England, 5/7/2009 2:00
Labour are being totally dishonest not just about the state of the economy and need for public spending cuts despite requiring a greater tax take. Aparently MG Rover was kept afloat before the 2005 election and now Mandelson does not want to release the report into the subsequent collapse until after the next election.
Lord Mandelson will stop at nothing to keep Labour in power. For that reason Labour must be booted out.
- Andrew, Melbourne, Oz, 5/7/2009 1:31
This is ridiculous, i have yet to meet a poor pensioner and i am sick and tired of the freebies that they receive at my expense. One things for sure, there will be nobody there to pick up the bill for me when i need it. This country is too soft. I bet alot of the pensioners that are receiving free personal care put nothing in the pot when they were working, I think i will spend my savings now, after all whether you pay for your nursing home or not everybody gets the same food and same comforts. As usual it’s the ones who save that are the losers.
- dw, uk, 5/7/2009 1:25
Brown is mister Tax man. Instead of lowering the taxes on the people, he has been taxing (especially the middleclass) people with this stealth taxes. Labour is a party for the many,… yes many to pay his taxes!!
This man can’t grasp the debt he has singlehandedly put us all in. He is in denial about cuts. When will he own up to his incompetance? In the boom times, he took the glory.. now in the bust, he still things it never happened under his rule.
- eric, uk, 5/7/2009 1:21
Gormless Gordon has displayed beyond reasonable doubt that he doesn’t have a clue about living in the UK below £160,000.
This next tax scam is unbelievable.
These career politicians of all parties are in it for the money and not the benefit of country…Sack the whole lot of them is what I say!
- Harry, London, 5/7/2009 1:20
He wants to try a way of getting those who have never made any contributions to pay,as aposed to denying the expats who have paid in all their working lives any NH treatment unless they pay again.N.S.Miles
- Norman Miles, Chengdu,Sichuan,China, 5/7/2009 1:17
Is there no end to this man’s stupidity? Why doesn’t he just cut his ridiculous spending plans? Every 10 year old knows that you can’t spend what you don’t have!
- Mark R, Coventry UK, 5/7/2009 0:52
It doesn’t matter if Brown promises world peace and eternal life after the next election…he won’t be the PM anymore.
- David Bourke, Rochester, Kent., 5/7/2009 0:52
McBean, the incompetent, muddling, fuddling idiot who continues on his deluded path believing he can still fool the electorate. Made a total shambles of the nation’s finances. On the matter of age care, the clear question is why is England to be treated differently to Wales and Scotland and subject to yet another of his stealth taxes?
- Terence, Hereford, UK, 5/7/2009 0:45
He has to win the election first … roll on that day when we can finally cheer as New Labour implodes.
- Andy, Lincolnshire Marshes, 5/7/2009 0:38
Alistair Darling and his other thieving lot should be made to pay back, plus interest all the money that they have bled from us the tax payer through the gravy train in parliament, then we wouldn’t have to pay any increases in our taxes. And whilst we are on the subject of “The gravy train” When are we going to see any prosecutions against this “Rabble” !!!!!!!!!!!!
- rg bargy, katchka poland, 5/7/2009 0:37
How are they going to implement this plan? Brown and the rest of his looney tunes party won’t BE the government after the next election.
- Pete, Manchester, 5/7/2009 0:32
I can tell Gordon how to save millions.First off cut the MPs to about 300 Secondly raise the retirement age of all civil servents to 65.Thirdly Pass laws that make it impossible for the health service to be sued,. But makes doctors libal if they make mistakes.Then abolish all councils they are not needed.
- dave smith, surrey, 5/7/2009 0:31
Gormless Gordon can plan all he likes, there is no way this bunch of corrupt, morally bankrupt, deluded shysters will win the next election.
- Diana, England, 5/7/2009 0:26
Am I alone in being fed up with paying taxes for services that I don’t get with-out paying again. I am not a high rate tax payer, just an irrate tax-payer who is fed up of sponsering politicians stupid ill thought out plans.
- glyntinmyeye, Woking Uk, 5/7/2009 0:24
Labpor thugs won’t be in government afetr next year, hopefully forever.
- jack, ashford england, 5/7/2009 0:24
Is this Gordon Borwn trying to bribe OAPs into voting for him as we know they are the group most likely to vote?
- Jan, London, 5/7/2009 0:23
He knows he’s out at the next election, so he’s leaving all these time bombs for the incumbent to deal with and get the blame.
- Danny, Pendine, 5/7/2009 0:15
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