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

On 28 October, Chancellor John Healey will be delivering his first budget. So far, he has declined to rule out tax rises, while restating the Government commitment not to raise the main rates of Income Tax, National Insurance or VAT.

For GP partners, this budget will land after a challenging year. The 2026/27 contract was imposed without agreement, and practices have taken part in collective action since May, although talks on the 2027/28 contract now offer a tentative reset.

Therefore, the question for partners ahead of this year’s budget stays the same: how do you protect personal wealth and keep the practice stable, amidst any potential changes?

The pressure has moved to the partnership

Although the total number of fully qualified GPs in England has almost recovered to 2015 levels since the last budget, partner numbers have not. England has lost almost 6,600 full-time equivalent (FTE) GP partners since 2015, including 336 in the year to August 2026. Each departure affects the remaining partners’ premises arrangements and succession plans. These are also the areas where Budget measures can have the greatest impact.

Practice income is also less predictable than it was: changes to funding formulas, list sizes and contracts could all shift what flows into the practice over the next two years. Our rolling primary care update, Repeat Prescription, tracks each of these as they develop.

What has already changed since the last Budget?

Several measures announced in November 2025 now affect GPs.

Income Tax and National Insurance thresholds remain frozen until April 2031, so more of a GP’s income moves into higher bands as earnings rise.
Tax rates on dividend income increased from April 2026. This affects GPs with investment portfolios or limited company structures for private or locum work.
New, higher rates of tax on property income and savings income apply from April 2027. Partners who own property personally should review how that income is held.

Build financial resilience now

We recommend starting with up-to-date figures. Practices should have current accounts and ideally a 12-month cashflow forecast showing key commitments such as loan repayments, lease obligations and staffing costs. Stress-test that forecast against different funding outcomes, keep a cash buffer and review borrowing arrangements. For partners, understanding how practice performance feeds into personal tax and pension positions is what makes the difference once the Budget measures are known.

Avoid acting on speculation. Decisions made in the weeks before a Budget on the strength of rumours are difficult to reverse. Use the time to gather your figures, so you can act quickly once the measures are confirmed.

A check-up for your financial health

An accountant with experience in general practice will understand the nuances of NHS contracts, pensions and partnership arrangements. When choosing an adviser, ask about their GP client base and their experience with partnership changes, practice mergers and 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.

To discuss how the Autumn Budget could affect your practice or personal finances, contact the Price Bailey Healthcare team.

We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information on this page is intended as a general guide only. While we work to keep our content accurate and up to date, we cannot guarantee that it reflects the position at the time you are reading it. 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. For more information on our editorial process, click here.

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