Reeves has one month to save Wales’ health and social care from £759 million ‘jobs tax bombshell’
The Liberal Democrats have warned Rachel Reeves that she has just one month to save the health and care sector in Wales from a £759 million tax bombshell over the next five years.
The party said that the Chancellor should use the Spring Statement to announce she is exempting the sector from the impending tax rise before it comes into force on April 6th.
Analysis by the Liberal Democrats shows Wales’ health and social care sector is facing an estimated £147.1 million bill next year due to the national insurance tax hike, rising to £159.7 million a year by the end of the decade. This means that Welsh health and care providers are expected to fork out an additional £759 million in employer’s national insurance contributions over the next five years.
The UK Government has previously announced that it will cover the rise in Employer’s National Insurance for the NHS, but ministers have not committed to covering the cost of the jobs tax for other health and care providers such as care homes, GPs or dentists.
Just a few weeks ago, thousands of protesters descended on Westminster, demanding action on social care, including a scrapping of the national insurance hike for care providers.
Welsh Liberal Democrat Westminster Spokesperson David Chadwick MP said:
“Rachel Reeves has just one month to save health and social care from this jobs tax bombshell.
“Ever since the Chancellor’s failed budget, I have been speaking to healthcare providers in Wales and their message could not be clearer: next month's tax could deny vulnerable people the care they need.
“Social care is on its knees, waiting times for GPs are through the roof and NHS dentistry is on the brink of extinction across Wales. The impact of years of Welsh Labour neglect is being compounded by these extra costs.
“Pride should not stand in the way of doing what is right: they must listen to the voices of health and social care providers across Wales and scrap this job's tax.
“Rachel Reeves must announce this in the Spring Statement on April 6th, or she risks throwing to the wolves care providers and everyone who depends on them."
ENDS