Effects of the mini-budget on dentistry

Following last week's mini-budget, you may be wondering how the measures will impact finances throughout the dental industry.

Since the chancellors 'mini-budget' last Friday, which was supposed to spring the UK economy back to life, there's been a worrying domino of events, beginning with the devastating fall in the value of the pound, instigating the Bank of England to announce another interest rate rise is to be expected.

The dominos falling has lead to carnage in the mortgage market, with deals being pulled and replaced with higher interest rates.

But how does this impact dentistry?

While the proposed tax cuts looked as though they would benefit higher earning dentists and business owners, the reality is, the bleaker economic picture is sure to overshadow any personal gain.

Although dentists as higher earners are less exposed to the impacts of inflation and higher interest rates, a weaker pound and an up and down stock market means the impacts may be felt more than ever before.

On the flip side, there is some positive news for practice owners, as the crisis doesn't seem to have affected practice valuations, and for associate dentists, nurses, hygienists, therapists and practice staff, the dental sector is to be resilient and there shouldn't be any worry when it comes to job security.

Unfortunately, with these events way beyond our control, there is of course very little any of us can do to impact the current state of the UK economy. Many of us have lived through a number of recessions and economical cycles, most recently of course the global impact of Covid in March 2020, and its important to remember, there's always light at the end of the tunnel.

Just how long the tunnel is, remains to be seen.

To read more about the mini budget – you can access the Morris & Co summary here.

Morris & Co is a firm of Chartered Accountants which has for many years specialised in acting for dentists. We are members of and regulated by, the ICAEW (Institute of Chartered Accountants in England and Wales) and we are here to help all of our dental clients be they associates or practice owners by providing advice and guidance on all financial matters. We pride ourselves in being immersed in all things dental, allowing us to provide expert advice to all within the industry.

Please contact us on via phone on 0151 348 8400, or email dentists@moco.co.uk