Highland GP Practices at Risk of Closure Due to National Insurance Increase, BMA Warns

A senior Scottish representative of the British Medical Association (BMA) has stated that medical practitioners in the Highlands are concerned that rising National Insurance (NI) expenses might lead to the closure of some practices. Last week, Chancellor Rachel Reeves revealed in her Budget that employer contributions, which encompass medical practices, are scheduled to increase starting next April. Dr. Al Miles, who serves as the deputy chairman of the BMA’s Scottish GPs committee, reported that he had been contacted by Highland doctors expressing apprehension over thousands of pounds in additional expenses. The UK government commented that it had made “tough decisions” within the Budget to allocate additional funding for the NHS and social care services. While the NHS itself is exempt from this increase, general practitioner (GP) practices are not, as they are categorized as independent contractors. Dr. Miles, based in Grantown-on-Spey, explained that since 95% of GPs’ revenue originates from the NHS, they are consequently ineligible for other forms of tax relief. He further noted that the sector has already experienced 15 years of insufficient resources. Dr. Miles stated: “Some GPs are talking about this being the final nail in the coffin of their practice.” He continued: “For any practice that is marginal this could force them to close.” He added: “If it doesn’t it will certainly make it harder to recruit doctors to general practice.” Dr. Miles highlighted that it is costly for the NHS to intervene and assume control of struggling practices, and he urged the UK government to alleviate the financial pressures on GPs. He indicated that this situation impacts practices throughout the UK. A spokesperson for the UK government affirmed that the Budget is projected to provide a £22bn boost to the NHS and social care. The spokesperson further stated: “The employer national insurance rise doesn’t kick in until April, and we will set out further details on allocation of funding for next year in due course.” Scotland’s Finance Secretary, Shona Robinson, has appealed to the UK government to promptly address the “growing confusion and alarm” stemming from the proposed increase. Copyright 2024 BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking.