London MPs tore into Rachel Reeves’ National Insurance hike on employers hitting “hospices and many wonderful charities”.
They highlighted the impact on the capital of the Labour Chancellor’s £25 billion NI tax raid.
Twickenham MP Munira Wilson told a debate on the NI rise: “Shooting Star children’s hospice in Hampton serves children with life-limiting conditions and supports their families not just in my constituency but across south-west London and Surrey.
“Will the minister commit to making hospices exempt from the NI rise.”
The Liberal Democrat MP also stressed that Shooting Star in Hampton, west London, was waiting for confirmation as to whether the children’s hospice grant, which this year provided it with £1.8 million, would continue beyond April 2025.
Health minister Karin Smyth stressed the Government “understood the pressures and the precarious situation that many have been left in after 14 years of the last Government”.
She added: “We are willing and keen to talk to representatives from all types of hospice, and others. We are going through the process of the allocations.”
But Harrow East MP Bob Blackman also criticised the NI rise which has prompted warnings that it will hit the Labour government’s drive to boost economic growth, with latest figures showing GDP fell 0.1 per cent in September.
He said: “The minister will understand that GPs are private contractors to the health service, as are pharmacists, hospices and many wonderful charities.
“The Government have decided to ensure that the public sector is protected from the National Insurance increase.
“All that the minister needs to do is agree that all the suppliers to the NHS are also protected, which would safeguard their position.
“Otherwise, care homes will close down, pharmacies will close down, and hospices will not be able to provide their services.”
The Conservative MP stressed: “My constituency has the wonderful St Luke’s hospice, which does brilliant work...and which has told me that it will have to reduce services drastically as a result of the changes.”
Ms Smyth responded by emphasising that large private equity companies own many social care providers.
“We want to ensure that any additional funding from the Budget goes exactly where it needs to be: supporting patients,” she said.
She added that the Government understood “the real pressures” facing the healthcare sector as a result of the NI rise and this has been taken into account when allocating funding.
But Conservative backbencher Sir Roger Gale (Herne Bay and Sandwich) said GPs and hospices need answers now on extra funding to help them deal with the NI rise.
He said: “They can’t wait for discussions through the normal channels while this c**k up is put right.”
Ms Smyth replied: “He says it’s an ill-thought-through Budget, I don’t know whether he agrees or disagrees with the extra funding that this Government has secured to give to the NHS after the disaster of the last 14 years.”
Ms Reeves hiked taxes by £40 billion, borrowed £32 billion more, to fund some £70 billion more of public spending, including at least £22 billion more for the NHS.
