Thank you for writing to me concerning the impact of the Budget on dentistry.
My Welsh Conservative colleagues and I are extremely disappointed with the decisions made by the Labour UK Government in its new budget. Not only has the Labour Party introduced £40 billion worth of tax rises, they have allocated these funds poorly.
The Chancellor’s decision to increase Employer’s National Insurance (ENI) by 1.2%, as well as to reduce the threshold at which employers pay towards ENI down to £5,000, will have a catastrophic impact on the ability of the public sector to perform, including dental practices, which will inevitably lead to the financial burden being placed at the feet of paying patients.
The Labour Party were not transparent about these tax rises during their election campaign, and were wrong to say that these changes would not place a burden on working people.
A bottom end estimate is that it could collectively cost dental practices across Wales at least £3 million in extra National Insurance payments. To place these financial burdens upon practices will serve only to further lessen the appeal of NHS work, with many practices already delivering NHS treatments at a loss.
Dental costs have already risen significantly this year, and the Welsh Government when questioned have not ruled out the possibility of increasing these costs further during this Senedd.
Welsh Conservatives understand that dentistry in Wales is already in crisis and needs support, not further pressures, if it is to remain able to provide affordable and quality services to the people of Wales. We are also calling on the Welsh Government to use the extra monies from the Autumn Budget to support reducing NHS waiting lists and to strengthen care services across Wales, as well as to deliver support for Welsh pensioners in the winter months and to make the case to the UK Government to retain the current system of agricultural relief for inheritance tax.
I thank you again for taking the time to contact me.
Kind regards,
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Dear X,
The recent Budget will hit dental care across this constituency. I am writing in hope that you can press Government to offer needed support.
Dental practices are small businesses. The Budget brings a huge increase in overheads, but offers nothing by way of support.
The cumulative changes to National Insurance and the National Minimum Wage will add tens of thousands to the wage bills of a typical practice.
Private practices will have little choice but to raise prices. NHS practices won’t have that option.
Many practices are already delivering NHS treatments at a financial loss. The Budget will push more of my colleagues to the brink, or out of the NHS entirely. Local residents will inevitably feel the impact.
All dental practices need help. But for NHS practices the Government can extend the same relief from National Insurance contributions that is being offered to hospitals in England.
Ministers say the increase in Employment Allowance may help. But it isn’t an option for those focused on serving the public sector. It offers just another reason to leave the NHS.
Failure to act here will push more colleagues out of NHS dentistry.
We needed a Budget that offered a chance to save dental services UK-wide. This one risks breaking it.