UK PM Johnson: From April, will create 1.25% levy on earned income

Health and social care reform will be funded through a UK-wide 1.25% levy based on national insurance contributions, British Prime Minister Boris Johnson announced on Tuesday, per Reuters.

Additional takeaways

"Covid has placed massive pressures on the National Health Service (NHS)."

"We must now help the NHS recover."

"We need to pay good wages for nurses."

"We need to go beyond the record funding."

"Waiting lists on the NHS will get worse before they get better."

"We will take difficult decisions on funding."

"From April, will create 1.25% levy on earned income."

"This will go straight to the front line."

"We will ask better off business owners and investors to make a contribution too."

"Governments have ducked this problem for decades."

"There can be no more dither and delay."

"We are setting a limit on what people are asked to pay for social care."

"You can't fix the covid backlogs without giving the NHS the money it needs."

"No conservative government ever wants to raise taxes - I accept it breaks a manifesto promise."

"Covid changed everything."

"This is the right, reasonable and fair approach."

Market reaction

The GBP/USD pair continues to edge lower following these remarks and was last seen losing 0.45% on a daily basis at 1.3373.