Concerns raised how CGT will negatively impact businesses and working people through either lower wages or inflation – London Business News | Londonlovesbusiness.com

The Chancellor previously ruled out taxing workers, and it’s a welcome move that this decision has been upheld in the Autumn Budget. This reflects the government’s commitment to keeping people’s wellbeing at the heart of its health policy.

Capital Gains Tax and National Insurance changes

We’re aware that adjustments to Capital Gains Tax (CGT) and increased employer national insurance contributions raise significant concerns for many businesses, particularly those operating with tighter budgets.

These changes could hinder businesses’ ability to hire talent or may result in lower pay increases for employees. Ultimately, this situation affects working individuals through either reduced wages or rising inflation.

When costs rise, there’s a real risk that employers will cut back on workplace wellbeing initiatives and even drop pay rises. Businesses must avoid viewing wellbeing programs as discretionary. These initiatives are not just a cost but a vital investment in your people’s long-term resilience, health and productivity.

Cutting back on them could lead to higher absenteeism, burnout and reduced morale, ultimately impacting companies financially.

Insurance Premium Tax 

While we acknowledge the government’s decision to maintain the Insurance Premium Tax (IPT), we believe this moment represents a missed opportunity to incentivise health insurance ownership during a critical health crisis. Our recent research indicates that 40% of employees prioritise access to private healthcare over other benefits, underscoring the importance of affordable health insurance.

Instead of merely maintaining the status quo, we urge the government to consider more innovative approaches. By eliminating IPT for health insurance, the government could have promoted greater access to private healthcare and encouraged businesses to invest in their employees’ health. With rising living costs, a more proactive stance would ensure that both physical and mental health support remain accessible, fostering a healthier population.

Affordable health insurance not only protects individual wellbeing but also alleviates long-term pressure on public health services by encouraging early intervention through private healthcare options. We hope to see the Treasury and the Health Department collaborate in driving meaningful change, demonstrating courage and creativity in addressing the complexities of our health system.

Household Support Fund

Financial insecurity is deeply intertwined with mental health challenges. Vulnerable households, in particular, are at a greater risk, which is why the decision to extend the Household Support Fund by £1 billion is so critical.

The government has acknowledged the direct connection between financial stability and mental health by continuing to support this. Further expanding the fund is still an important step, as it provides the security needed to help at-risk families avoid mental health crises, especially given the current cost of living pressures.

Funding public health services

Many have debated the benefits and consequences of taxing the ‘super-rich’ in the lead-up to this Autumn Budget. There is a real opportunity to invest those additional funds into public health services, particularly mental health. A vast number of people are facing crises and are now waiting months, even years, to receive support through public-funded mental health services.

The overall burden on the healthcare system and specific services must continue to be tackled by the Labour government and supported by alternative access to private healthcare systems that can help.

Allocating more funding to these services will help with faster access to treatment, improved mental health outcomes, and reduced pressure on families who may otherwise need to turn to private care. By funding these services with an increase of £22.6 billion in day-to-day health spending, hopefully everyone – regardless of income – will have access to the help they need when they need it.