LONDON: A Liberal Democrat government would raise income tax to help fund the NHS and social care, the party has pledged. It said a penny-in-the-pound rise on all income tax bands and on dividends would raise around £6bn a year. The Tories said 30 million people would be hit by the tax rises. Labour said its NHS plans would be in its manifesto. The Lib Dem pledge is complicated by devolution, such as Scotland having its own tax-raising powers. The NHS is facing one of its toughest-ever financial challenges as it struggles with a growing and ageing population.
In the UK, £140bn was spent on health last year and around £25bn on social care. The proposed tax rises are the Lib Dem’s first significant policy announcement of the general election campaign. Party leader Tim Farron said he wanted “to be honest with people and say that we will all need to chip in a little more”. He told the BBC: “This is an average of £3 a week for the average earner in this country, so a pint of beer a week to pay for a health and social care service that will last us from cradle to grave.” A Lib Dem government would raise all tax bands by one percentage point. The party estimates someone earning £15,000 would pay an extra £33 a year in tax, with someone on £50,000 paying an extra £383. This would not apply in Scotland as income tax levels are devolved to the Scottish Parliament, where the Lib Dems are the fifth largest party. The plans also include a UK-wide rise of 1p on dividend income taxes if you hold shares in a company.
