Social care tax rise should be re-examined, says Mark Drakeford

How to fund social care properly in the long-term is a dilemma for politicians

An income tax rise to pay for free social care in Wales needs to be re-examined, the first minister has said.

Mark Drakeford said tax and public spending changes at a Westminster level "strengthened" the case for re-considering a specific social care tax.

Plaid Cymru's Adam Price said such a tax was an option for giving social care sustainable long-term funding.

As part of a Labour-Plaid Cymru Senedd deal, both parties aim to provide a free National Care Service.

The co-operation agreement aims to provide an implementation plan for a free social service by the end of 2023.

The deal also includes commitments to provide free school meals for primary school children, control the numbers of second homes and holiday lets, and changes to the size of the Senedd.

Marking a year since the start of the co-operation agreement with a news conference at the Welsh government's headquarters, Mr Drakeford and Mr Price said they would have to revisit their plans for free social care in light of changes at Westminster.

The UK government has recently reversed its original plan to use an increase in national insurance - a UK-wide tax on earners - in order to provide long-term funding for social care.

In November, the chancellor also presented an Autumn Statement which outlined slower growth in public spending from 2025 onwards.

Adam Price and Mark Drakeford hosted a news conference for more than an hour on Thursday

The first minister said the "changed context at the UK level does mean that we're looking again" at the plans for free social care.

Mr Drakeford also said he believes the case "has strengthened for us going back" to look at options for a social care levy "to see whether it offers us an alternative way of resolving some of these dilemmas in Wales".

In 2018, economist Prof Gerald Holtham proposed an income tax increase of between 1% and 3% to fund elderly social care in Wales.

Speaking at the news conference, Plaid Cymru's leader Mr Price said: "We've basically had Westminster for more than a decade continually moving in circles, u-turn after u-turn, no progress.

"What I think we have to conclude is if we wait for Westminster to come up with a sustainable solution to their social care challenges...then we will be waiting possibly forever."

Mr Price added: "I do think we need to revisit some of the ideas which were proposed earlier stages by Professor Holtham to see if that...is the way forward on a sustainable basis for the kind of National Care Service that we want to create."

'Voters completely ignored'

Ahead of the news conference, Welsh Conservative Senedd Leader Andrew RT Davies said: "One year on since the cooperation agreement, Labour and Plaid have brought in one disastrous proposal after another, from default 20mph speed limits to tourism taxes to creating more politicians in Cardiff Bay, that are not only far removed from the wishes of the Welsh people, but their needs too.

"The priorities of voters have been completely ignored, with NHS waiting lists sky-rocketing beyond anything seen elsewhere in Britain, the blocking of a Wales-specific Covid inquiry, and school standards, public transport services, and pay packets all diminishing.

"Only the Welsh Conservatives would do what the Welsh people want and need: bin this plan for more politicians and instead focusing on growing wages, tackling waiting lists and building the roads we need so we can get Wales moving again."