Budget – “huge disappointment for NHS dentistry”
Labour’s first budget in 14 years has certainly had many businesses talking – £40bn in extra tax take that fell mainly on the business sector. £25bn alone being collected from the two changes that were announced in relation to employers NIC (the 13.8% rate being increased to 15% and the starting threshold being reduced from £9,100 to £5,000). When coupled with the increase in the minimum wage and the cost of implementing the recently announced new employment laws, this will have a significant effect on many dental practices.
However, one particular concern for the dental sector is that as well as large increases in wage costs, employment allowance cannot be claimed by a public body or business carrying out more than half their work in the public sector (such as local councils and NHS services). Therefore, the increased employment allowance from £5K to £10,500 will be of no benefit to many.
NASDAL Chair, Heidi Marshall commented, “I’m afraid that for a lot of NHS and mixed practices, yesterday’s budget will be a huge disappointment. As well as a huge hike in wages costs, to not be able to claim what might have been perceived as the sweetener in employment allowance, will be an extra blow.”
The government have indicated that the Budget is intended to raise most of the additional funds required during the course of this parliament and it makes sense electorally for a government to get the ‘nasty’ tax rises in early. Dental practices will be hoping this is the case and will hope to see considerable investment in NHS dentistry from the extra funds raised.