Cole-Hamilton attacks national insurance impact on GPs and care providers

Speaking in this afternoon’s debate on the impact of National Insurance increases on public services, Scottish Liberal Democrat leader Alex Cole-Hamilton said:

“The Chancellor’s decision to increase employers’ National Insurance contributions, without ensuring that GPs and care providers are compensated, is a huge mistake that risks stretching primary and social care to breaking point.

“Even before these tax rises, GPs in my constituency have told me time and again just how up against it they are, and patients feel it too. Not long ago you used to be able to call up your GP and secure an appointment within the next few days. Nowadays people are often having to ring again and again, only to wait weeks to be seen.

“These extra National Insurance contributions mean many GP practices will be unable to follow through with recruitment plans that would have helped ease the pressure and deliver a better service for patients.

“GPs are being punished by a flaw at the heart of the rules here. They are being treated as private contractors, but because their work is entirely in the public sector, they are not entitled to employment allowance which would have reduced their National Insurance liability by up to £5,000 per year.

“The Institute of General Practice Management has estimated that the rise will mean the average GP surgery’s tax bill will go up by around £20,000 a year; that’s equivalent to hundreds of appointments.

“And it’s not just GPs that are stuck between a rock and a hard place here. Other care providers will be forced to make cutbacks too. Look at the challenge for pharmacies and hospices.

“Many dental practices are struggling and might be forced to reduce their already limited NHS provision as a result; that would have serious consequences for the already sparce patient access. Just today my party uncovered that the UK Government made no assessment of its tax hike on NHS dentists before making the change. The British Dental Association say that’s “reckless”.

“We know that Scotland’s social care sector is in crisis. It too will be hit hard by this hike. Already, thousands of people are left languishing in hospitals, sometimes for months, because of the lack of care home places and care packages in the community. Not only is this unbearable for patients, but it causes delays right across the health service.

“None of this has been helped by the SNPs decision to plough their time and money into the ill-fated, so-called National Care Service which no one wants – and which the Scottish Government should scrap immediately.

“The last thing the sector needs is for the UK Government to heap on more financial pressure through staff costs. So Labour need to rethink this because its giving with one hand to the NHS but taking away with the other. If they won’t cancel their counterproductive jobs tax, then exempt GPs and care providers, so as not to make the health and care crisis worse.

“Local authorities are concerned too – their budgets are hugely stretched, and they’re now worried they could be on the line for further millions. Representatives of Scotland’s voluntary sector are warning this measure could cost them upwards of £75 million per year. We’re talking about social care, youth work, small charities.

“The government should raise the money we need by reversing Conservative tax cuts for the big banks or asking the social media giants to pay their fair share.

“Liberal Democrats will always speak up on behalf of those who provide healthcare and look after our loved ones. And we will provide the much needed, grown-up opposition this country deserves.”