Welcome for childcare plan – but little else to cheer from budget, say vet bodies

Government plans to extend free childcare provision, which were formally unveiled in the spring budget, are “good news for the veterinary profession”, the BVA says.

The announcement, which had been widely anticipated, was the centrepiece of the financial statement delivered by chancellor Jeremy Hunt on 15 March.

But other senior figures fear the budget will do little to address the sector’s current challenges, while welfare charities have vowed to fight on after Mr Hunt ignored their calls for a VAT suspension on veterinary care and pet food costs.

Extend provision

At present, all three and four-year-old children in England are entitled to 15 hours of free childcare per week during school term time.

That level rises to 30 hours a week where one or both parents is in work and earns less than £100,000 a year, on sick or annual leave or on shared parental, maternity, paternity or adoption leave.

But, under Mr Hunt’s proposals, that provision will be extended to all eligible children aged nine months or over by September 2025.

Rollout

The plan has been criticised in some quarters for the length of its rollout, with the first extension, offering 15 hours of weekly care to two year olds, not due to be introduced until April 2024.

But BVA president Malcolm Morley said: “The chancellor’s commitment to extend the 30 hours’ free childcare provision in England is good news for working families, and good news for the veterinary profession.

“More than 60 per cent of the veterinary workforce is female and with evidence unfortunately still illustrating that women’s careers are disproportionately impacted because of childcare responsibilities, this commitment – combined with a wider embracing of flexible working – will provide extra support for any vets, vet nurses or support staff with parental responsibilities looking to return to work.”

‘Lessens burden’

SPVS board chairperson Peter Orpin said the measure was “massively welcome and lessens the burden on parents”.

He added: “For businesses planning to invest, the enhanced capital allowances will be helpful. Never invest, though, in some kit to gain a tax relief and end up with a ‘white elephant’. Your investment needs to be planned and purposeful.”

But he was less positive about the planned increase in corporation tax, which he warned could be “a drag” on the performance of larger practices and groups.

Energy prices

Despite confirmation of a three-month extension of the energy price cap for domestic customers, there was no extension of the support programme for businesses that Mr Hunt announced in January.

Although that scheme, which will last until April next year, has been estimated to be worth around £5.5 billion, this is less than a third of the projected £18 billion of support provided for non-domestic users this winter.

Ahead of the statement, the Federation of Small Businesses warned that further help was needed to reduce the risk of some enterprises going to the wall, while veterinary sector leaders have voiced their concerns about the potential impact of high energy costs over many months.

‘Won’t alleviate challenges’

VMG president Miles Russell, whose predecessor Rich Casey urged practices to move quickly in the wake of the January energy announcement, said: “At first glance, we believe that the budget is unlikely to alleviate current challenges in the veterinary sector.

“In a predominantly female profession, the additional support with childcare from 2024 is welcome and may make it easier for some colleagues with children to come back into work.

“However, we note that its introduction is still a year off and won’t be complete until September 2025.

“We need more time to fully understand the pension changes, but anticipate that the majority in our profession will see little change in the way they save for their retirement.

“In the meantime, many veterinary businesses will need to absorb increases to corporation tax and higher energy prices as government support is withdrawn.”

Frustration

Charity sector leaders also expressed frustration after the Dogs Trust-led campaign for a 12-month suspension of VAT charges on veterinary medicines and services, plus pet food, was resisted by Mr Hunt, despite being backed by more than 90,000 people.

Its chief executive Owen Sharp said that while some budget measures related to the cost of living crisis may help families, they would not address concerns directly relating to pet ownership.

He added: “We believe that pet food and veterinary care, including medicines, should be considered essential expenditure during this time of crisis.”

Cost of living

David Bowles, the RSPCA’s head of public affairs, added: “The cost of living crisis is the single biggest challenge for animal welfare right now – and RSPCA staff see on a daily basis the help many pet owners need as bills skyrocket.

“We’re disappointed there were no specific budget measures to directly support the millions of pet owners struggling right now.

“We will continue to work alongside other animal welfare charities in urging the UK Government to rethink its support for pet owners, and to remove this VAT burden.”

But vet and Conservative backbench MP Neil Hudson said: “Put simply, this budget will directly ease cost of living pressures for people across the whole country, so should rightly be celebrated.”