Chancellor Rishi Sunak was last night 'playing hardball' over Boris Johnson's proposed care tax as tense negotiations over new money for the NHS went down to the wire.
Downing Street had been hoping to secure agreement with the Treasury over the new NHS and Social Care Levy by early yesterday and to announce the details on Tuesday.
But amid mounting tensions between No 10 and No 11, by early evening Mr Sunak was still demanding assurances from the Prime Minister that, once introduced, the £10 billion-a-year levy would cover the cost of dealing with the NHS's Covid backlog – and that he would not be forced to keep finding top-up funds from depleted Treasury coffers.
The row has come amid growing Westminster rumours that Mr Johnson could reshuffle his Cabinet as early as Thursday, as part of a plan to 'relaunch' his Government for the autumn.
The rumours started after some advisers were told to 'block out their diaries' for the end of the week, with Foreign Secretary Dominic Raab and Education Secretary Gavin Williamson favourites to be moved.
Downing Street was hoping to secure agreement with the Treasury over the new NHS and Social Care Levy and to announce the details on Tuesday. Pictured: PM Boris Johnson
Despite the tensions with Mr Johnson, Mr Sunak is presumed to be safe in his role because his popularity within the party would make him too great a threat to Mr Johnson if he were stripped of the job.
No 10 and No 11 were also negotiating yesterday a separate, multi-billion-pound boost for the NHS this winter to cover the period until the proposed levy comes into effect in April.
The strain placed on the NHS by the pandemic – more than 500,000 Covid patients have been admitted since March last year – has pushed the waiting list for elective surgery and routine treatment in England to a record high of 5.3 million.
This figure is predicted to rise to 13 million by the next Election if no action is taken.
The Chancellor's stance came amid a growing revolt in the Cabinet and on the backbenches over the levy, which would breach the party's manifesto promise at the last Election not to raise taxes.
At least six Ministers, including the Chancellor, have expressed concerns about the breaking of the promise and the potential damage to the party's reputation for economic prudence.
The Prime Minister has said he is determined to fulfil the pledge he made when
