Andy Burnham considers death tax for social care funding
Andy Burnham has failed to rule out a 10 per cent “death tax” on all estates to fund his sweeping reforms to the social care system, reports BritPanorama.
The new prime minister, who will detail his proposals later this week, has indicated the establishment of a National Care Service that could cost up to £18.7 billion annually.
Previously, as health secretary under Gordon Brown, Burnham supported the idea of replacing the existing inheritance tax, which levies 40 per cent on estates exceeding £325,000, with a 10 per cent tax on all estates passed on after death.
When questioned on whether he still endorses this approach to finance his care service, the prime minister’s official spokesperson remarked, “I’m just not going to get ahead of his update on this issue, which will come later in the week.”
He acknowledged that implementing a new system would require time, warning that without reform, the NHS might struggle under the burden of care that does not fall under its purview.
The spokesperson added, “You’ve seen his determination to tackle this issue, and I think that gives you a sense of where his feelings lie.”
Burnham, who assumed office last Monday, has committed to leveraging “whatever political capital I have” to push for substantial changes in the social care landscape.
Work and pensions secretary Pat McFadden also refrained from dismissing the possibility of a 10 per cent death tax during an interview, stating, “Andy Burnham is going to be talking about social care tomorrow. This is a subject that’s been close to his heart for many years… He is determined to put political capital into this.”
McFadden emphasized the long-term nature of the challenge and anticipated further details from Burnham in his speech, noting that inadequate attention had been paid to the issue historically.
Burnham has expressed intentions to initiate cross-party discussions regarding social care reforms, cautioning that the NHS could face collapse if improvements are not made. During a visit to Portsmouth, he mentioned that other political leaders had already expressed a willingness to engage in dialogue.
“It’s one thing to say that and another to actually try and find common ground. But let’s try on this issue,” he stated, acknowledging the collective failure of all parties on this pressing matter over the years. “I would like to see if we could arrange talks, cross-party talks, to build that spirit of collaboration from the start.”
