UK Contemplates Social Care Spending Cuts for Tax Reductions

In an interview with The Sunday Times, UK Prime Minister Rishi Sunak revealed considerations to impose restrictions on social care spending as a means to finance further government tax cuts.

Bloomberg News reported Sunak's affirmation of the Conservative Party's objective to eliminate National Insurance contributions, following Chancellor Jeremy Hunt's announcement last week of a two-percentage-point reduction in payroll taxes, alongside a similar cut disclosed last autumn.

Sunak emphasized the intention to eliminate the tax duplication in employment practices, highlighting that ultimately, all funds converge into the same pool to finance public services.

This move signals the government's ongoing efforts to ease tax burdens, albeit with potential implications for social care funding.