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National Insurance tax hikes could force GP practices to close, doctors warn

FAMILY doctors warned they will lose their jobs as the government faced mounting pressure today to shield GP practices from “astronomical” rises in cost under a controversial tax rise.

The Royal College of GPs (RCGP) called for “urgent assurances” from Health Secretary Wes Streeting that practices will be exempted from the hike in National Insurance employer contributions like “the rest of the NHS and public sector.”

RCGP chairwoman Professor Kamila Hawthorne said: “We have very serious concerns about the impact of the increase in National Insurance employer contributions on GP practices right across the country, many of whom are already struggling to keep their doors open and make ends meet due to historic chronic underfunding.

“They are working their hardest to provide quality care for their patients against a backdrop of significant budget constraints and staffing challenges — and this added level of insecurity will only compound these pressures.

“For some, this extra financial burden will be the straw that breaks the camel’s back, forcing them to make tough decisions on redundancies or even closing their practice, and ultimately it is our patients who will bear the brunt.”

The British Medical Association (BMA) also warned the higher taxes could “force many GP surgeries to close or cut services” under the “astronomical” increases to their staff expenses, with one practice manager suggesting the hike could cost about £40,000 a year.

BMA general practitioners committee chair Dr Katie Bramall-Stainer wrote to the Treasury chief secretary Darren Jones, saying his comments that GP surgeries are “not part of the public sector” came as a “huge shock to the profession.”

Failing to provide “absolute certainty” the exemption will be granted swiftly means “practices will be forced to reduce services, implement cost-cutting, lose staff and in some cases close their doors completely,” she added.

“Even with GPs’ best efforts to maintain services, without the government’s intervention, patients will undoubtedly be the ones to feel the impact of these cuts.”

Keep Our NHS Public co-chair Dr John Puntis added: “GPs contract to work for the NHS on national terms and conditions, providing crucial services to the whole population.

“One in five practices have closed in recent years often through financial pressures, resulting in increased access difficulties for patients.

“If the government really wanted to bring back family doctors and reduce pressure on hospitals, it would exempt them from the rise in employers National Insurance contributions, like the rest of the NHS.”

The Resolution Foundation has dubbed the Budget measure a “tax on working people” as it will lead to lower pay rises for millions.

The Lib Dems urged Chancellor Rachel Reeves to exempt GPs from the tax hike, warning that “fixing the GP crisis is crucial for saving the NHS.”

Shropshire GP Dr Jess Harvey told BBC Radio 4’s Today programme that practices will “really struggle.”

“During these contract negotiations for our new contract, unless we’re given suitable remuneration to cover this National Insurance inflation, then we’re going to really struggle,” she said.

“There are going to be practices that start to make redundancies. There are practices that were already considering redundancies because it’s so hard to manage financially, and if we don’t get enough money to continue to run these practices, then we’re not going to be able to provide the service that people want.”

Paul Stanley, a practice manager at Gas House Lane Surgery in Morpeth, Northumberland, told the programme the changes could cost his surgery about £40,000 a year.

Organisations representing care homes and hospices are also affected and voiced concerns about the sector’s ability to plug the funding gap.

Warning the rise will result in closures, Geoff Butcher, of the Blackadder Corporation, said he finds it “extraordinary that year after year, governments find billions to support the likes of Ukraine, but we don’t find the money to support our very vulnerable people — I think it’s a huge reflection on our society.”

A No 10 spokeswoman said contracted workers, including GPs, were not eligible for an exemption from the National Insurance contribution hike but that there is a “general process whereby departments, the Department of Health, for example, confirm their funding for general practices.

“I think that’s part of the annual GP contract process. I believe that will take place later in the year.”

No 10 said it was taking action to support the social care sector “more generally.” 

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