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Concerns have been raised that the tax increases announced in the latest Budget could put significant strain on private GP practices. The rise in National Insurance (NI) and the National Minimum Wage could create a “huge upset” for surgeries that operate independently, such as Delapre Medical Centre in Northampton, according to Dr Jamie Green, who runs the practice. The Institute of General Practice Management has estimated that the rise will cost the average surgery around £20,000 more a year.
The tax changes, scheduled to take effect in April, include an increase in employer NI contributions from 13.8% on salaries over £9,100 to 15% on salaries above £5,000. Despite being shielded from the NI rise, GP practices – which deliver NHS services but operate as independent businesses – will still be affected by the increase. A typical member of staff on minimum wage working 35 hours a week will cost the surgery in the region of £2,300 – equal to a 10.5% increase in costs.
Dr Green stated: “If we don’t have the required funds from the Treasury towards primary care, we’re going to be in a really tight position especially when you consider the year-on-year increase in minimum wage, which has really hit the surgery hard.” Delapre Medical Centre is not alone in its predicament. Many GP practices across the country operate on tight budgets and the tax rise could impact staffing levels, potentially leading to longer waiting times and less attentive patient care.
While the Department of Health and Social Care has promised to share further information on the matter in due course, the budget announcement could spell trouble for countless surgeries as the cost of employment rises and the provision of services begins to falter. At present, there is no information on how the government plans to support GP practices affected by these new measures
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