The 5 year ‘deal’ ends on 31 March and funding for future pay rises will be recommended by the Doctors and Dentists Remuneration Board (DDRB). The BMA has provided evidence to the DDRB on the need for additional funding above the 2% pay rises given. The results and recommendation are not likely to come until July 2024.

Understandably practices around the country are concerned by this. There appears to be little else in financial support for practices, other minor items, such as an uplift on the QOF aspiration payment to 80% (from 70%) throughout the year.

Without agreement of the BMA, a contract will again be imposed on GP practices. This resulted in a call to action by BMA GPC chair Dr Katie Bramall-Stainer – She urged GPs to become BMA members and vote in a referendum on the acceptance of the contract by 27th March. The results of will determine whether industrial action is necessary, or appropriate.

The BMA has called for an increase in GP contract funding of 8.7%. Factoring in inflation, this would put funding back to 2019/20 levels and provide much-needed funding to practices, to support increased demand and pressure.

As well as the lack of funding, practice cost pressures continue. Energy costs are likely to fall, but the Bank of England base rate appears relatively stable, and it’s predicted that there will only be minor reductions in 2024.

The National Living Wage will increase 9.8% from April 2024 and as many practice roles are at, or linked to this, costs will rise significantly for practices. This will eat into available funding and will impact on partners, as well as the ability of practices to continue offering additional services.

The finance function of a GP practice is often a minor operation and more often than note practice managers have kept practice accounting records and completed the bookkeeping role. Whilst this has worked for many practices in recent years, the pressures on practice finances are such that a much greater focus on practice finance is required.

Practices and Primary Care Networks handle millions of pounds in funding each year and are substantial businesses in their own right – Similarly sized corporate businesses would have sizeable finance teams, constantly working on and reviewing data, to make key financial decisions for their future. Whilst the funding is not there to implement teams like this, ensuring there’s a close eye on expected funding and costs will be key to the longevity and stability of General Practice.

Among our client base we have noticed an increased appetite for practices wanting to get a handle on their finances. Budgets and forecasts can help to understand anticipated practice performance, by looking at comparative data and projecting the year ahead. It’s important to keep an eye on income due, with PCSE delays and the myriad of ways to claim income, practices could be owed significant amounts.

PKF Francis Clark will be exhibiting for the first time at Best Practice Birmingham in October 2024. Healthcare and in particular Primary Care is a key sector for us, and we are keen to support GP practices, doctors and medical professionals in any way we can. We look forward to speaking with you all and discussing how we practice finances can be managed in the difficult times ahead.