Health and Social Care Act Repeal Bill - New Clause 1 - Review of effects of Act on revenue sources of health and social care expenditure

With this it will be convenient to consider new clause 2—Assessment of revenue effects on health and social care of increases in the rates of taxes on dividend and capital gains income. This new clause would require the Treasury to report on an alternative to using the health and social care levy to fund health and social care by raising more tax revenue from dividends and capital gains.

This is probably the most important debate that we could be having; it is about funding the British public’s No. 1 priority: the national health service. The issues have not gone away, and there are big challenges facing the health service such as obesity, cancer, diabetes, stroke prevention, which need to be addressed through prevention measures.

The hon. Gentleman makes an important point about raising awareness on public health issues and implementing effective tobacco control plans, which can derive significant benefits for the Department of Health and Social Care and the Treasury.

At this time of real challenge, it is important to drive public awareness on how to use energy more efficiently in order to help people with their fuel bills.

Mr. Burgon supports new clause 2, emphasising that it aims to ensure those who derive income from wealth pay at least as much tax as those deriving income from work. He highlights the potential for raising £24 billion annually by ending lower rates on capital gains and share dividends, suggesting this could provide significant funding for social care and healthcare.

Mr. Redwood opposes new clause 2 due to concerns about hypothecation and misleading people into believing there is a single low tax that can solve significant financial issues for social care and healthcare. He believes funding should come from general taxation and supports growth in revenues through economic expansion rather than a specific tax.

Supports new clauses 1 and 2. Argues that the Government's failure to outline proper management of tax and expenditure will cause more economic chaos and harm hard-working people. Raises concerns about current social care funding through council tax, suggesting alternatives such as taxing wealth income or abolishing upper earnings limits on national insurance.

Urges the House to reject new clauses 1 and 2. Explains that overall funding for health and social care services will be maintained, and highlights the Government's commitment to fiscal sustainability. Argues against the proposal of flat taxes on unearned income like dividends due to significant behavioural responses.

Welcomes the repeal Bill but calls for more investment in families, especially the working poor. Acknowledges that while tonight's measure helps, more is needed to support those on low wages.