Pre-Budget report paints grim picture for the healthcare sector

Posted on January 1st, by editor in Caring Times. No Comments

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

Comments are closed.

Latest blog posts

New liberty rules – a breath of fresh air?

By Caring Times editor GEOFF HODGSON

Good news that the Government intends to replace the Deprivation of Liberty Safeguards (DoLS) with a system to be called...

Now where did I put those spectacles?

By Caring Times editor GEOFF HODGSON

Last week, guest blogger John Burton touched on the management of dentures in care homes and used an extended toothy...

Missing teeth

By guest blogger JOHN BURTON

I know it’s an obsessional bad habit, but I watch the CQC Public Board Meetings every month. I believe that...