Budget Tax Hikes Threaten Care Home Stability

The recent Budget announced by Chancellor Rachel Reeves has raised significant concerns among care providers and GP surgeries, particularly regarding the increase in employer National Insurance contributions. Mike Padgham, chair of the Independent Care Group, warns that the measures could force care homes to close, highlighting that the extra costs could reach £30,000 a month for his facilities. GP practices are also facing potential redundancies due to the financial strain, with one practice manager estimating a loss of £40,000 annually. The Liberal Democrats have opposed the tax increase, arguing it disproportionately affects small care providers and could worsen the NHS crisis. While the government did allocate an additional £600 million for social care, experts contend that it is insufficient to cover the rising costs, which could lead to a wave of service closures. Health Secretary Wes Streeting acknowledged the significant impact on various healthcare providers and promised further discussions on potential protections.