Downing Street denies rift between Johnson and chancellor of the exchequer Sunak

Labour leader accuses prime minister of introducing ‘working class dementia tax’

Downing Street has denied reports of a rift between Boris Johnson and chancellor of the exchequer Rishi Sunak following hostile briefings from their teams this week.

A number of newspapers on Wednesday cited sources in 10 Downing Street blaming the chancellor’s team for anonymous criticism of the prime minister after his rambling speech to the Confederation of British Industry (CBI) on Monday.

But after the two men sat next to one another during prime minister’s questions in the House of Commons, Mr Johnson’s press secretary insisted that they were working well together.

“I’ve seen various anonymous source briefings that I’m not going to get into. But the prime minister and the chancellor and the entire government is focused simply on getting on with delivering on the people’s priorities,” she said.

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Reports of tension between the prime minister and the chancellor follow a succession of Conservative backbench rebellions, the latest surrounding plans to reform social care. Earlier this year Mr Sunak introduced a new health and social care levy, increasing national insurance contributions to fund a new social care system.

The 2019 Conservative manifesto promised that nobody would have to sell their home to fund their care and a new bill would cap lifetime contributions at £86,000. But in a last-minute change the government said that contributions to care made on behalf of the less well-off by local councils would not count towards the cap.

Nineteen Conservative MPs voted against the change, which will disproportionately affect people in poorer parts of the country where property prices are lowest.

Pledge

At prime minister's questions Mr Johnson would not repeat the manifesto pledge, which he has modified to promise that nobody would have to sell their home while they or their spouse was living there. Labour leader Keir Starmer accused him of introducing "a working class dementia tax" that would see the poorest paying more so that people with houses worth £1 million would keep most of their assets.

“Strip away the bluster, strip away the deflection, strip away the refusal to answer the question, there’s a simple truth and this is why the prime minister won’t address it, people will still be forced to sell their homes to pay for care,” he said.

“Working people are being urged to pay twice. During their working lives they’ll pay much more tax in national insurance whilst those living off wealth are protected. Then when they retire they face having to sell their home when the wealthiest won’t have to do so.”

Sir Keir said the prime minister was unable to explain how someone whose house worth £100,000 accounted for almost all their assets could avoid selling it if they had to pay up to £86,000 for social care.

“It’s another broken promise, just like he promised that he wouldn’t put up tax, just like he promised 40 new hospitals, just like he promised a rail revolution in the North,” he said.

“Who knows if he’ll make it to the next election, but if does how does he expect anyone to take him and his promises seriously?”

Denis Staunton

Denis Staunton

Denis Staunton is China Correspondent of The Irish Times