General practitioners (GPs) are urging the government to exempt them from the upcoming employer tax increases announced in the recent Budget, expressing concerns about the potential negative effects on patient services. While the NHS and other public sector entities will be protected from a rise in National Insurance (NI) contributions starting next April, GP practices, which primarily function as small businesses providing NHS services, are set to be affected by this change.

The health department has indicated that additional guidance for GPs will be forthcoming, though specific details have yet to be provided. Private companies offering social care services have also raised alarms regarding the NI increase, confirming they will be subject to the new rates as well.

Beginning next April, employers will face a NI rate of 15% on salaries exceeding £5,000, a significant increase from the current rate of 13.8% applicable to salaries above £9,100. The Institute of General Practice Management estimates that this change could raise the average tax burden for GP surgeries by approximately £20,000 annually.

Treasury minister Darren Jones mentioned that modifications to the Employment Allowance—designed to help some businesses reduce their NI obligations—would provide relief for smaller GP practices. However, professional organizations have expressed skepticism about this assertion, noting that public sector-focused businesses typically do not qualify for these allowances.

The Royal College of GPs has reached out to Health Secretary Wes Streeting, advocating for measures to protect GP surgeries from this tax increase by ensuring they receive adequate funding to offset these new expenses. Prof. Kamila Hawthorne, chair of the college, warned that without such support, many practices may need to consider layoffs or even closure, ultimately impacting patient care.

Dr. David Wrigley, deputy chair of the British Medical Association and a practicing GP, echoed calls for rapid and comprehensive reimbursement solutions. He emphasized that the NI hike would have a significant impact on practices already facing financial challenges.

Unlike other NHS sectors that will receive protections through Treasury back-payments against this increase, GP surgeries operate under contracts with the government as business partnerships among multiple GPs. The Liberal Democrats have joined in advocating for exemptions for GPs and private care providers from this tax increase.

Party leader Sir Ed Davey highlighted the need for similar protections for pharmacists and noted that while hospitals are exempted from these increases, GPs should also receive consideration. Mike Padgham from the Independent Care Group warned that this rise could severely strain providers in his region and called for immediate government intervention.

In response to these concerns, Downing Street announced an additional £600 million in grants aimed at local councils supporting social care services but maintained that not shielding GPs from increased employer NI contributions aligns with prior government policies.