General practitioners are urging the government to shield them from upcoming tax increases for employers that were revealed in the recent Budget announcement, cautioning that this could adversely affect patient services. While the NHS and other public sector entities will be protected from an increase in National Insurance (NI) contributions starting next April, GP practices—operating mainly as small businesses—are set to be impacted.

The health department has indicated that further guidance for GPs will be forthcoming, though specifics have yet to be provided. Additionally, private firms involved in social care have expressed concerns regarding the implications of the NI increase and a planned 6.7% rise in the minimum wage.

From April next year, employers will face an NI rate of 15% on salaries exceeding £5,000, a rise from the current rate of 13.8% that applies to salaries above £9,100. The Institute of General Practice Management estimates that this change could increase the average tax liability for a GP practice by approximately £20,000 annually.

Treasury minister Darren Jones has claimed that changes to the Employment Allowance—which permits certain businesses to reduce their NI expenses—will help smaller GP practices navigate this financial burden. However, professional associations have expressed skepticism about this assertion, highlighting that many businesses primarily serving the public sector do not qualify for this allowance.

The Royal College of GPs has reached out to Health Secretary Wes Streeting, advocating for GP surgeries to receive adequate funding to cover the additional costs imposed by the tax hike. Prof Kamila Hawthorne, chair of the College, warned that without such support, practices may need to consider layoffs or even closure, which would ultimately impact patient care.

Dr. David Wrigley of the British Medical Association echoed these concerns and called for an immediate announcement regarding full reimbursement for impacted practices. He emphasized that many surgeries are already struggling financially and would find the NI increase burdensome.

Paul Stanley, a practice manager at Gas House Lane Surgery in Northumberland, projected an annual cost increase of around £40,000 due to the rise, which could force a reconsideration of staffing levels.

This dispute over the NI increase underscores the complexities surrounding publicly funded healthcare delivery. Unlike NHS hospitals that will receive financial support through back-payments from the Treasury, GP surgeries operate under different conditions due to their status as business partnerships contracted with the government.

The National Pharmacy Association has also advocated for pharmacies to receive similar support as other NHS entities facing these tax increases. The Liberal Democrats have joined calls for protection against these hikes for both GPs and care providers. Mike Padgham from the Independent Care Group expressed urgency for government action in light of these challenges facing providers in his area.