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Liberal Democrats Propose Tax Increase on Online Giants to Support Children’s Mental Health

05/30/2024
in News

The Liberal Democrats have unveiled a plan to address the pressing issue of mental health among children in England. In a bid to provide vital support for youngsters, the party has proposed raising taxes on social media giants and tech behemoths like Amazon and Google. The revenue generated from this tax hike, they argue, would be channeled into funding mental health professionals for all state schools across the country, should they secure victory in the upcoming general election.

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This initiative, according to the Liberal Democrats, would entail tripling the Digital Services Tax levied on such corporations. The aim is to bolster the workforce of mental health professionals available to schools, thereby tackling the alarming waiting lists for mental health services currently plaguing England’s youth. Recent statistics from the NHS indicate that nearly 340,000 children and young people are presently awaiting access to mental health support.

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In response to the proposal, the Conservative Party emphasized its efforts in increasing training opportunities for mental health nurses. Meanwhile, the Labour Party outlined its own strategy, pledging to embed mental health support within every school.

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The urgency of the matter is underscored by NHS data, revealing that one in five children and young people aged between eight and 25 exhibited signs of a probable mental disorder last year. Despite existing provisions for mental health support within schools, including training for teaching staff and access to external intervention teams, substantial gaps remain.

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Highlighting the severity of the situation, Liberal Democrat Leader Ed Davey lamented the plight of thousands of children “left in limbo” while awaiting treatment. The party’s manifesto commitment entails ensuring that state-funded school governing bodies are mandated to facilitate access to qualified mental health practitioners or counselors, with funding provided by the central government. Smaller schools with fewer than 100 pupils could pool resources to share access to such professionals.

Central to the Liberal Democrats’ funding strategy is the proposed expansion of the Digital Services Tax, targeting multinational enterprises operating social media platforms, search engines, and online marketplaces in the UK. Introduced in April 2020, this tax imposes a 2% levy on companies with global revenues exceeding £500 million and UK revenues surpassing £25 million.

By tripling the rate of this tax, the Liberal Democrats estimate an additional £1.5 billion in revenue, supplementing the existing £760 million forecasted by the Office for Budget Responsibility for 2024-25.

Responding to the proposal, Conservative Minister for Mental Health Maria Caulfield reiterated the government’s commitment to bolstering the mental health workforce. Labour’s Health Secretary Wes Streeting, on the other hand, reiterated his party’s pledge to embed mental health support within schools and communities, financed by abolishing tax breaks for private schools.

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