Hammond plans long-term care reform and self-employed tax in Budget

Philip Hammond 620px

This week’s Budget will unveil Government plans to overhaul social care and healthcare funding and raise tax rates for the self-employed, according to the Times.

The Budget statement will announce a £1.3bn windfall for councils over the next two years and will be found by cutting existing spending, not through taxation.

As well as the extra cash, Chancellor Philip Hammond will use the Budget speech to announce a review into finding a long-term solution to the issue of social care funding.

Possible options being explored by the Treasury include a ‘care Isa’ that gives consumers a way to save tax-free for their own care.

The Government is also considering letting people withdraw money from their pension pots tax-free to pay for healthcare.

The Times says others options on the table include setting a cap of £72,000 on the amount that citizens pay for healthcare, with the state picking up the rest.

An alternative system would see free healthcare up to a set limit, with further payments split between the individual and the state up to a certain level.

The Chancellor will also announce a 3p tax rise for the self-employed, with national insurance rates rising to 12 per cent.