The Budget ‘could have been a lot worse’, but there was ‘little comfort’ in changes announced on Wednesday 26 November.
“The good news for GPs is that no changes to the pension tax regime were announced in the Budget, which could have impacted GPs both individually and as employers,” said Andy Pow, chair of the Association of Specialist Medical Accountants (AISMA).
“However, there is little comfort to be found elsewhere in the Budget, particularly for the increasing number of GPs taking dividends from limited companies. They face a 2% dividend tax rate increase from April 2026, both at the ordinary and upper rates.
“‘The tax threshold freeze until 2031 is particularly problematic for GPs who find themselves dragged above the £100,000 tax band.”
Tax changes provided a mixed message for sessional GPs, he added.
“Many doctors are likely to face losing their tax-free personal allowance and childcare allowance and may instead choose to work fewer sessions.”
Higher-earning salaried GPs may cut back on sessions, but this may mean increased use of GP locums.
All in all, Pow said that while the outlook for the profession was difficult, the changes announced on Wednesday could have been worse.
Dr Richard Fieldhouse, NASGP chair, said: “While we are glad the Budget contained no new ‘hair-raising’ changes to the dysfunctional NHS pension tax regime, there is genuinely little comfort to be found for the sessional workforce facing huge financial uncertainty.
“The decision to freeze tax thresholds until 2031 will inevitably force many higher-earning GPs to choose to work fewer sessions, which ultimately impacts patient care. Furthermore, GPs taking dividends from limited companies face a 2% tax rate increase from April 2026.
“This Budget was a clear missed opportunity to designate specific emergency funding to address the persistent GP underemployment crisis. We understand GP partners face significant uncertainty due to rising costs, but stability requires investment. The government must remove the restrictive red tape from ARRS funding to allow practices to hire the GPs they desperately need.”