Johnson’s promises on social care stymied by tax constraints
The Chancellor has his hands tied when it comes to releasing cash to fund social care reform, the Times reports. Paul Johnson, head of the Institute for Fiscal Studies, said that Rishi Sunak would find it “extremely difficult” to fund the commitment on social care. “If you’re not touching the three main levers of income tax, VAT or national insurance and you’ve already raised corporation tax your options are extremely limited,” he said. “You’d need a lot of fiddling around with lots of different taxes, it feels like a big constraint. You’re really squeezing the barrel. His one possible get-out-of-jail card is that the economy does better than expected in the budget, but that’s not a long-run solution.” James Smith, of the Resolution Foundation, suggested that a package of wealth taxes was the only plausible option for raising the necessary sums if the “big three” taxes were ruled out.