PARLIAMENTARY WRITTEN QUESTION
(3 December 2024)

To ask the Chancellor of the Exchequer, with reference to her Department's policy paper, Changes to the Class 1 National Insurance Contributions Secondary Threshold, the Secondary Class 1 National Insurance contributions rate, and the Employment Allowance from 6 April 2025, published on 13 November 2024, if she will make an estimate of the (a) revenue that will accrue to the Exchequer from businesses in the dentistry sector as a result of the proposed increased rate of employer national insurance contributions and (b) average cost per business (i) nationally and (ii) by constituency of that increase in the next five financial years.

Asked by:
Jess Brown-Fuller (Liberal Democrat)

The latest forecasts for tax revenues were published alongside the Office for Budget Responsibility’s (OBR) October Economic and Fiscal Outlook. These forecasts are based on economic determinants, including wage growth and employment levels. The OBR do not forecast NICs receipts at a sector level. Detailed tax receipts forecasts can be found here: Economic and fiscal outlook – October 2024 - Office for Budget Responsibility.

The government will provide support for departments and other public sector employers for additional employer National Insurance Contributions, i.e. central government, public corporations and local government. Dentists are independent contractors and therefore will not be exempt from these changes.

The government has taken tough decisions to fix the foundations so that increased funding for the NHS in England could be announced at the Budget. Resource spending for the Department of Health and Social Care is set to increase by £22.6 billion in 2025-26 compared to 2023-24 outturn, providing a real-terms growth rate of 4% for the NHS, the largest since before 2010 excluding Covid-19 years.  This includes funding to support the NHS to deliver the first step of an extra two million NHS operations, scans, and appointments a year in England.

Primary care providers – general practice, dentistry, pharmacy and eye care – are valued independent contractors who provide nearly £20bn worth of NHS services. Every year we consult with each sector both about what services they provide, and the money providers are entitled to in return under their contract.

DHSC will confirm funding for dentistry for 2025/26 as part of the usual contract processes later in the year, including through consultation with the sector.

Government keeps all taxes under review.

Answered by:
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1 January 1970