Time for a financial check-up: how GPs can prepare ahead of the Budget

General practice is under significant pressure, and it’s a challenging backdrop for practices trying to plan ahead. The profession is contending not only with rising demand and shrinking workforce numbers, but also growing unease about the direction of policy. In recent months, GP leaders have warned that walkouts remain a possibility if new Neighbourhood Contracts are not genuinely GP-led. This is a sign of how strained the relationship between policymakers and frontline clinicians has become.

Workforce pressures are amplifying this uncertainty. The number of fully qualified GPs has stagnated, with nearly 850 fewer full-time equivalent GPs in England now than in 2015, despite patient demand continuing to rise.^[1]

The upcoming Budget may adjust the numbers, but the underlying questions for GPs will remain: how to protect personal wealth, keep the practice stable and lay the groundwork for what comes next. This is especially important as the Carr-Hill Formula is reviewed and funding allocations are reconsidered, creating added uncertainty about how resources will flow in the years ahead.

This article looks at the practical steps GPs can take now to prepare for the Chancellor’s announcements and strengthen their financial position.

Practices under pressure

Practices tell us that overheads are climbing, recruitment and retention are becoming more difficult, and contract uplifts rarely keep pace with inflation or changes in service delivery. Meanwhile, space constraints mean it’s impossible to train new GPs quickly enough. Recent contract changes on online access have added to the workload, with doctors’ leaders raising concerns about safe working limits and implementation pressures.

At the same time, Labour’s plan to deliver more homes is expected to bring significant population growth in many areas. Although this is a positive step in addressing housing shortages, it will inevitably increase demand for primary care and intensify caseloads. Unless recruitment and retention improve in parallel, the policy risks widening the gap between patient need and clinical capacity. For practices already facing space and staffing constraints, this could mean additional strain – both from the direct increase in patient numbers and the indirect effects of population mobility and local development pressures.

For clinicians, the implications of this stretch well beyond the day-to-day. Retirement timing, pension allowances and tax planning all become harder to optimise when the practice is under stress. This matters, because it’s never been more important to take a structured approach to practice and personal finances.

Take control and build financial resilience

Clarity is the first step to confidence. Before making any decisions, make sure your financial information is up to date. Practices should have clear, current accounts and ideally a 12-month cashflow forecast that highlights key commitments such as loan repayments, lease obligations and staffing costs. This can make tax planning, partnership discussions and succession decisions far smoother. Working with medical accountants who understand the financial landscape of general practice can help you interpret these figures correctly and take the best action for your circumstances.

Building resilience into your plans is equally important. Good financial management is as much about flexibility as it is about accuracy. Maintaining a cash buffer, reviewing borrowing arrangements and stress-testing plans under different scenarios can help you avoid unwelcome surprises. For practices, forward planning around rising workforce costs and capital investment is essential. And for GPs, understanding how practice performance links to personal wealth will provide reassurance and peace of mind.

A check-up for your financial health

Healthcare finances are complex, and the pressures GPs face make expert advice even more valuable. An accountant with experience in general practice will understand the nuances of NHS contracts, pensions and partnership arrangements. When choosing an advisor, ask about their GP client base and experience with common scenarios such as partnership changes, practice mergers or property sales.

Whatever the Budget brings, preparation is the best reassurance. Taking stock now, getting specialist advice and building flexibility into your plans will help you approach the months ahead with greater confidence and control.

References

^[1] BMA, Pressures in general practice data analysis, https://www.bma.org.uk/advice-and-support/nhs-delivery-and-workforce/pressures/pressures-in-general-practice-data-analysis

We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.

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