South Devon MP Caroline Voaden has called on the government to exempt GPs and other health and care providers from the forthcoming rise in employers’ national insurance (NI) contributions.

According to her party, the Liberal Democrats, the rise in employers’ NI announced in October’s budget could put 42,143 GP appointments at risk in Devon due to increased costs to practices.

Although the budget included a £22.6 billion boost for the NHS, spread out over two years, the chancellor also announced big tax increases, reducing the threshold at which employers start paying NI on an employee’s salary from £9,100 to £5,000 a year from April 2025.

Although the NHS and the rest the public sector are exempt from the tax rise, many GP practices are run as small businesses and will most likely be hit by the hike.

In a statement, the Lib Dems quoted figures from the Institute of General Practice Management, estimating that the rise would see the average GP surgery’s tax bill going up by about £20,000 a year.

The party claimed this could end up costing GPs in Devon £2.36m for all 118 practices in the county, the equivalent cost of providing 42,143 GP appointments at £56 per appointment, or 357 appointments a year to the average GP surgery.

Ms Voaden asked the government to “urgently rethink” and scrap the NI hike. Although there is no sign this will happen, the Lib Dems said they are seeking to use amendments to the upcoming legislation on the budget to push their demands.

Ms Voaden said: “Since the election, all I’ve heard from GPs in South Devon is that more funding is urgently needed to cover the ever-growing list of jobs they are expected to cover.

“The news coming out of the budget will do the opposite, and now GPs are set to be hammered by higher taxes at a time when they’ve made it loud and clear that their finances are incredibly stretched.

“I fear for the knock-on effect this will have on people in South Devon already struggling to get an appointment. The chancellor must urgently rethink these proposals and exempt GPs from this misguided tax hike. We cannot rescue local health services whilst burdening them with even more costs.”

GP Dr David Wrigley, who is also deputy chair at the British Medical Association (BMA), was quoted by the BBC, saying the tax rise would have a “monumental” impact, pointing out that many surgeries were already on “a financial tight rope”.

The view was echoed by other GPs across the country.

Private care homes and hospices have reportedly also voiced their concerns about the rise, pointing out that the rise in the minimum wage will be an additional cost.

To mitigate the impact of the NI hike, the chancellor has also said that she would extend the employers allowance, which permits employers to claim back from their NI bill, from £5,000 to £10,500.