Pre-Budget report paints grim picture for the healthcare sector
A leading financial and business advice company in the care sector has been far from welcoming about the Pre-Budget Report, saying that the rise in National Insurance and VAT along with budget cuts will have a detrimental effect on the sector.
David Jewkes, a Partner at Grant Thornton, said: ‘Overall, the Pre-Budget Report painted a grim picture for the healthcare sector. The announcement to raise National Insurance Contribution (NIC) rates by a further 0.5% from April 2011 on top of the 0.5% increase announced at the 2008 Pre-Budget Report was a nasty surprise. The NHS, being such a large employer, will foot a large increase to its wage bill.
‘However, the �20,000 threshold will go some way to mitigating the impact as many NHS workers are employed on a part-time basis so fall below this threshold. Public sector employees will also be hit by the two year 1% cap on pay increases and the announcement that Government contributions to public sector pensions will be capped. Jewkes went