Reeves has one month to save Scotland’s health and social care from £1.3 billion ‘jobs tax bombshell’

• Lib Dems call for health and social care sector to be exempted from National Insurance tax hike in Spring Statement.
• In Scotland, health and care providers, including dentists, GPs and care homes are facing a £256.8 million tax hike next year, or £1.3 billion over five years.

The Liberal Democrats have warned Rachel Reeves that she has just one month to save the health and care sector in Scotland from a £1.3 billion tax bombshell over the next five years.

The party said that the Chancellor should use the Spring Statement to announce she is exempting the sector from the impending tax rise before it comes into force on April 6th.

Analysis by the Liberal Democrats shows Scotland’s health and social care sector is facing an estimated £256.8 million bill next year due to the national insurance tax hike, rising to £277.8 million a year by the end of the decade. It means Scottish health and care providers are expected to fork out an additional £1.3 billion in Employer’s National Insurance contributions over the next five years.

The UK Government has previously announced that it will cover the rise in Employer’s National Insurance for the NHS but ministers have not committed to covering the cost of the jobs tax for other health and care providers such as care homes, GPs or dentists.

Just a few weeks ago, thousands of protesters descended on Westminster demanding action on social care including a scrapping of the national insurance hike for care providers.

Liberal Democrat Scottish affairs spokesperson Christine Jardine MP said:

“Rachel Reeves has just one month to save health and social care from this jobs tax bombshell.

“Ever since the Chancellor’s failed budget, I have been speaking to healthcare providers in Scotland and their message could not be clearer: next month's tax could deny vulnerable people the care they need.

“Social care is on its knees, waiting times for GPs are through the roof and NHS dentistry is on the brink of extinction across Scotland. The impact of years of SNP neglect is being compounded by these extra costs. 

“Pride should not stand in the way of doing what is right: they must listen to the voices of health and social care providers across Scotland and scrap this job's tax.

“Rachel Reeves must announce this in the Spring Statement on April 6th, or she risks throwing to the wolves care providers and everyone who depends on them."