£25 billion for British businesses. Subsequently, last week, Prime Minister Boris Johnson authorised a massive hike in national insurance to fund health and social care, abandoning the Tories’ policy of low state intervention.
Accordingly, IFS claims that amid the ongoing energy crisis, together with surging living costs and social security benefit cuts, the government is “smuggling in” the tax hikes under the cover of the pandemic.
In its recent assessment of public finances, the London-based economic research institute overall government spending is expected to increase by about 2 per cent from pre-pandemic levels to 42 per cent of national income. However, a growing share of this is expected to be directed towards health in response to pressures from an ageing population. As a result, there will be less left over for other Whitehall departments.
