Rachel Reeves’ National Insurance boost could impact more than two million GP appointments, analysis shows

More than two million GP appointments could be at risk due to National Insurance (NI) increases, according to analysis.

While the NHS and the rest of the public sector are protected from the rise, GP practices – which are usually run as small businesses under government contracts – will have to pay out.

In the Budget last month, Chancellor Rachel Reeves increased employers’ NI contributions on wages from 13.8 per cent to 15 per cent, starting in April.

This will increase the average tax burden of an operation by £20,000 per year, or an estimated £125.5 million across all 6,275 practices in England.

And with each patient’s surgery appointment costing £56, it is feared that to cover the tax increase some 2.24 million appointments are at risk of being canceled – an average of 357 per surgery per year.

Rachel Reeves’ decision to increase employers’ NI contributions could put more than two million GP appointments at risk, analysis shows

The NI increase will increase the average surgery tax bill by £20,000 per year, or an estimated £125.5 million for all 6,275 practices in England (file photo)

Professor Kamila Hawthorne, president of the Royal College of GPs, said the healthcare system needed ‘significant investment’ rather than ‘more worry and financial uncertainty’

GPs have already warned they will be forced to cut back on staff and reduce the number of appointments they can offer – or perhaps even close.

The analysis was carried out by the Liberal Democrats, who believe GP practices should be exempt from the tax increase.

Dentists, pharmacists, social care providers and charities have also spoken of their fears that Ms Reeves’ rise could force them to close.

Helen Morgan, the Lib Dems health and social care spokesperson, said: ‘There is no point in overwhelming GP practices with higher taxes at a time when many people are already struggling to get an appointment.

‘Surgery is also struggling, and these higher costs will leave GPs with no choice but to cut back on services and staffing. Ultimately, it is the patients who will pay the price. The Chancellor must urgently reconsider these proposals and exempt GPs from this misguided tax increase.”

NHS hospitals will be protected from the rise through back payments from the Treasury. But GP practices, which usually operate as business partnerships and deliver NHS care under government contracts, are not included.

And many GPs are already ‘working to govern’ in protest against their current contract, which limits the number of patients they see.

Professor Kamila Hawthorne, President of the Royal College of GPs, said: ‘GP teams are working hard to provide care for their patients against a backdrop of significant budgetary constraints.

‘The Government has ambitious plans to move much more care into the community, and we want to work with them to make this happen, because we know this is what patients want. But we need significant investment – ​​not more worry and financial uncertainty.”

A government spokesperson said: ‘We have taken difficult decisions to rebuild the foundations so that a £22 billion boost for the NHS and social care could be announced at the Budget. The employer NI increase will not come into effect until April and we will provide further details on the allocation of next year’s funding in due course.”