UK PM Johnson to unveil £10bn a year tax rise to fund NHS and social care – FT

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Early Tuesday morning in Asia, the Financial Times (FT) came out with the news suggesting UK Prime Minister Boris Johnson’s rejection to the Tory criticism over tax hike plan.

“Boris Johnson will on Tuesday defy a torrent of Tory criticism and announce a tax rise of more than £10bn a year, as he seeks to contain spiralling NHS waiting lists and tackle the funding crisis in social care,” said FT.

The news also mentions UK PM Johnson and Chancellor Rishi Sunak to have tried persuading Conservative Members of the Parliaments (MPs) over the plan to raise national insurance rates by 1.25 percentage points.

FT also adds, “On Monday, Johnson made a downpayment on the plan to tackle waiting lists, announcing an additional £5.4bn for the NHS over the next six months to help tackle treatment backlogs accumulated during the Covid-19 pandemic.”

It’s worth noting that chatters over the UK’s mask mandate heading into winter also take rounds after the recent jump in covid cases and death tolls.

FX implications

Although the news favors GBP/USD sellers, the cable holds onto the bearish consolidation around 1.3837 by the press time.

Read: GBP/USD prints fresh daily lows below 1.3830