(Bloomberg) -- U.K. Prime Minister Boris Johnson’s plan to hike taxes to fund the National Health Service was voted through Parliament, a policy that will see the Britain’s tax burden rise to the highest level on record.
Johnson’s health and social care levy, a new 1.25% tax on working Britons and their employers, was approved by 307 votes to 251 in the House of Commons on Tuesday evening. The revenue is earmarked to pay for a post-pandemic catchup program in the National Health Service and to overhaul the country’s struggling social care system.
Despite initial concerns that Johnson may face a rebellion from his backbenchers over the plan, which also includes an extra 1.25% on dividend tax, opposition was eventually muted. The levy comes even though the Conservative Party pledged not to increase national insurance in its 2019 manifesto.
On Monday, Britain’s biggest business lobby group said Johnson risks strangling growth through higher taxes.
Read more: Johnson Wins Health Care Vote to Push U.K. Taxes to Highest Ever
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