More than two million GP appointments could be at risk after Rachel Reeves's National Insurance raid (Image: Getty)
More than two million GP appointments could be at risk after Rachel Reeves's National Insurance raid, new analysis shows.
While the NHS and the rest of the public sector are protected from the rise, GP practices – which are mostly run as small businesses under Government contracts – will have to pay out.
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In the budget last month the Chancellor announced a significant rise in employer National Insurance Contributions (NICs), increasing the rate from 13.8% to 15% starting in April 2025.
The increase sparked concerns from businesses, who warn it could affect wages and lead to job cuts.
This will majorly impact GP’s surgeries as their tax bill will raise by ￡20,000 a year.
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GP surgeries tax bill's will raise by ￡20,000 a year (Image: Getty)
This will amount to ￡125.5 million a year in additional costs for the 6,275 practices in England, The Institute of General Practice Management estimated.
It is the equivalent of 2.24 million GP appointments at ￡56 per appointment.
The analysis was conducted by the Liberal Democrats, who believe GP surgeries should be exempted from the tax rise.
Family doctors have already warned they will be forced to cut back on staff and reduce the number of appointments they can offer – or may even close.
Helen Morgan, the Lib Dem Health and Social Care spokesman, said: “Clobbering GP practices with higher taxes makes no sense at a time when many people are already struggling to get an appointment.
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“Surgeries are already struggling and these increased costs will leave GPs with no choice but to cut services and staff numbers. Ultimately it is patients around the country who will pay the price."
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The Chancellor is however lowering the threshold for paying contributions which will fall from ￡9,100 per year to ￡5,000.
This comes despite Labour's election campaign pledge not to raise taxes for "working people".
The main tax rise in Ms Reeves' fiscal statement last month was a change to employers' national insurance contributions which is expected to raise more than ￡25billion for the Treasury.