Starmer: Funding arrangements to be set by the end of the year

Prime Minister Sir Keir Starmer has said that decisions on funding arrangements will be announced by the end of the year (Stefan Rousseau/PA) - (PA Wire)

Prime Minister Sir Keir Starmer has said that “funding arrangements will be set out by the end of the year” amid concern about the impact of national insurance changes announced at the Budget on hospices and GPs.

There have been concerns about the impact of changes on providers who work with the NHS.

Last week, Health Secretary Wes Streeting hinted at extra cash for GPs and hospices who are facing a financial hit as a result of a rise in employer NICs contributions.

Health Secretary Wes Streeting said he was looking ‘very carefully’ at funding allocations (Peter Byrne/PA) (PA Wire)

He said that there would be no formal exemption for the rise coming in April, but that he was “looking very carefully” at funding allocations from Westminster.

Sir Keir said that arrangements will be made by the end of the year while taking questions from reporters on the way to the G20 summit in Brazil.

Asked whether he could guarantee that hospices and GPs would be protected from extra costs, Sir Keir said: “We had to take tough decisions in the Budget in order to stabilise the economy, we did that by making sure we didn’t hurt the pay packet of working people, so they don’t see that in their pay packet at the end of the month.”

“And we invested hugely in health in particular, huge investment in health but also in education and housing.

“I think they’re the right priorities but funding arrangements will be set out by the end of year.”

Rachel Reeves announced changes to national insurance contributions in the Budget (Jordan Pettitt/PA) (PA Wire)

Pushed again on whether there would be help for those settings, the PM added: “Funding arrangements will be set out at the end of the year”.

Last week, Mr Streeting promised an announcement on hospices before Christmas while for GPs, who have warned they could be forced to cut services or close surgeries, he said he “recognised the pressures” they were facing.

While public sector organisations like the NHS will be protected from the impact of the tax hike on employers, hospices and GP surgeries face uncertainty.

The British Medical Association has warned that GP practices could be forced to cut staff and services, impacting on patient care, while some surgeries may have to close as a result of the increased costs imposed in the Budget.