Northampton GP warns tax hikes will put strain on surgeries

A GP has voiced concerns that tax increases announced in the Budget could put significant strain on private GP practices.

Dr Jamie Green, who runs Delapre Medical Centre, in Northampton, warned that the rise in National Insurance (NI) and the National Minimum Wage could create a “huge upset” for surgeries that operate independently, such as his.

The Institute of General Practice Management, which represents GP practice managers, has estimated the rise will cost the average surgery about £20,000 more a year.

Dr Green added: “A typical member of staff on minimum wage working 35 hours a week will cost the surgery in the region of £2,300. That’s a 10.5% increase in costs. That’s huge.”

The tax changes, which have been 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.

While the NHS and the broader public sector have been shielded from the NI rise, GP practices – which deliver NHS services but function as independent businesses – will still be affected.

Dr Green said: “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.”

The Department of Health and Social Care said further information for GPs will be announced in due course.