Budget 2016

The budget announcements often have an impact on the NHS, so we aim to promptly summarise the main impact to your organisations.  This year – the key points are as follows:

• The government are looking for £3.5billion savings per year in public spending until 2019-20.  No further details were formally announced.

Implications:

The NHS are likely to have reduced budgets and increased saving targets.

• The public sector will have an obligation to ensure employees are accounting for income tax correctly.

Implications:

The NHS will have increased obligations in ensuring the people employed (i.e. self-employed consultants) are correctly accounting for VAT.  Possibility that direct employment will be simpler alternative?

• 1^st Air Ambulance Service will be introduced in Northern Ireland.

Implications:

Likely improved health services in this area, and less strain on surrounding areas normally supporting this region.

• More funding to be provided for children’s services to be provided to the NHS

Implications:

As above, increased funding for children’s services in areas including Manchester, Southampton and Birmingham.

• Introduction of a sugar tax in 2 years

Implications:

Likely reduction of expenditure on obesity related health issues.

If you have any questions – or would like any advice on the specific points raise in the budget – please don’t hesitate to contact us.