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Autumn statement failed GPs by ignoring tax and pensions: BMA

1st November 2024 by NASGP

Autumn statement failed GPs by ignoring tax and pensions: BMA

GPs continue to face problems from the tapered annual allowance that affect the amount of hours they choose to work, a BMA leader has commented following this week’s Autumn Statement.

Before the budget, the BMA called on the Government to:

  • Protect pension contributions from a flat rate tax relief.
  • Index the annual allowance threshold in line with inflation.
  • Solve problems with the annual allowance taper.

Responding to the Autumn Statement, Professor Philip Banfield, BMA council chair, said: “It was sensible to see no further detrimental reforms to pension taxation rules.

“However, it’s disappointing, at a time when we need all doctors’ hands on deck to clear near-record backlogs in care and huge pressures across the NHS, that the Government has ignored our calls to remove financial barriers to doctors taking on additional work. No doctor should be in the position where they are effectively paying to work.

“It will be impossible for the Government to deliver the additional 40,000 evening and weekend appointments each week to clear waiting lists, with doctors declining extra work or reducing hours because of these significant flaws in the tax structure.”

He warned that the tapered annual allowance meant £1 extra in earnings could trigger a tax charge of up to £22,500 on hypothetical pensions growth.

Similarly, the taper of the personal allowance and of childcare and child benefit discourages many doctors from taking on additional work, which disproportionately affects women.

Accountants at AISMA also warned that the rise in employers’ national insurance contributions would increase costs to practices from next April. For example this means an employee earning £30,000 a year will cost the practice an additional £866.

Dr Richard Fieldhouse, NASGP chair, said: “Much more needs to be done to make the NHS pension attractive enough to keep GPs in work.

“We’re also worried about the impact of higher National Insurance and minimum wage for practices at a time when the profession is already sounding the alarm on finances.

“Provision must be made in the Spring budget, at the very latest, on how to pull general practice finances out of crisis.”

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