Current status: Answered by Neil Gray on 17 March 2025
To ask the Scottish Government what discussions it has had with the UK Government regarding the impact of proposed employer national insurance charge increases on GP practices in Scotland, including whether there is an option for applying exemption thresholds.
Scottish Government continues to call on the UK Government for analysis and mitigation of the impact of National Insurance changes on all commissioned services in the public sector, including GP practices.
Since the Autumn Statement published on 30 October 2024, Scottish Government has made continued representation to the UK Government on the significant impact that the changes will have on the health and social care landscape. In particular we note the continued inequity which leaves many commissioned services unable to claim the Employment Allowance, despite its extension to more businesses from 6 April due to the relaxations announced in the Budget.
The Cabinet Secretary for Finance and Local Government wrote to the Chief Secretary to the Treasury last month again highlighting the risks to GPs and other contractors and asking for specific consideration and review of the Employment Allowance to allow them to claim this relief. She further pressed the Chief Secretary on the impact of the National Insurance changes in a meeting on 27 February.
It remains the view of Scottish Government that mitigations are essential to safeguard existing service provision, and that greater recognition is needed of the impact to these vital public services – and the people who rely on them – if appropriate compensatory funding or extension of existing tax reliefs is not afforded.