Family doctors handing back contracts due to national insurance rise, MPs hear

Family doctors are handing back their contracts as a result of the Government’s plan to increase employers’ national insurance, MPs have heard.

A Liberal Democrat MP argued that the tax increase had driven four GPs in her constituency “over the edge”.

Concerns over the impact on charities, hospices and GP surgeries were repeatedly raised in the Commons, as MPs scrutinised the National Insurance Contributions (Secondary Class 1 Contributions) Bill on Tuesday.

Labour MP Gareth Snell called on the Government to “mitigate some of the worst aspects” of the Bill and ensure that charities and hospices are resourced “efficiently”.

Speaking from the Lib Dem front bench, Pippa Heylings accused the Government of “bringing an uncertainty” to GPs “at a critical time”.

She added that primary care providers “who form the foundation of our healthcare system, are being undermined by this tax increase”.

Intervening, Ulster Unionist Party MP Robin Swann (South Antrim) said this is a “significant problem” in Northern Ireland “where we’ve already seen a high number of GP practices actually returning their contracts”.

Ms Heylings said four “much-loved” family doctors in her constituency of South Cambridgeshire had returned their contracts, adding: “The hikes in the national insurance employers’ contributions has just driven them over the edge.”

The Conservative Party tabled amendments that would exempt care homes, hospices, nurseries and charities from the increase.

Shadow Treasury minister Gareth Davies cited the Institute of General Practice Management who said the tax bill of an average GP surgery will rise by £20,000 per year, and the Nuffield Trust saying care providers will see a £940 million increase as a result of the policy.

Mr Davies went on to say that Community Pharmacy England said community pharmacies will face an extra £50 million in costs each year and Hospice UK said £30 million be added to the bills for 200 hospices across the UK.

He said: “Why on earth, if you stand up and say you support public services, and that public services are apparently being trashed – why then go and tax them? Why then add to their cost base, which they have said, very clearly, will reduce services in each of their constituencies?”

He said children’s nurseries would also be affected and threaten progress he said was made under the previous Conservative government.

Labour MP Stella Creasy (Walthamstow) tabled an amendment which proposed a review into what would happen if the Government were to bring more childcare providers into the employment allowance programme, which could help them reduce their national insurance liabilities.

Liberal Democrat MP Helen Maguire warned that a community pharmacy in her constituency of Epsom and Ewell faces additional costs of £12,000 a year.

Mr Snell, MP for Stoke-on-Trent Central, said organisations such as hospices and charities “are essentially running Government services” before adding: “Is it not incumbent upon us to make sure that the services we ask them to provide are provided at the level that we expect? And we resource them efficiently?”

“I think the remedies that we are taking, whilst unpalatable to some, are necessary, I just wish we were able to mitigate some of the worst aspects of it,” he said.

Mr Snell also said there is a broader conversation to be had around the funding of the charitable sector, arguing that it’s “laughable and ludicrous in our country that some of those most important parts of our social care sector, some of our air ambulances, our hospices, are dependent upon charity full stop”.

He added he would “much rather” make a small contribution rather than watch people “rattle tins in supermarkets” and “sit in baths of beans to try and make sure that vulnerable people get the help and support they need”.