Rt Hon Rachel Reeves MP
Chancellor of the Exchequer
Her Majesty’s Treasury
1 Horse Guards Road
Westminster
SW1A 2HQ

Dear Chancellor,

We are writing to you to address the pressing economic challenges impacting those providing critical services and support to the NHS. The decision taken not to exempt the National Insurance increase for those providing statutory services such as care homes, homecare, hospices, learning & disability operators, and GPs has led to a significant financial burden. Stakeholders highlight a shortfall exceeding £1+billion, emphasising the unfairness and unaffordability of this situation.

Failure to act swiftly could have severe repercussions for 1.2 million vulnerable individuals and over 1.5 million workers in the care sector. It may result in reduced investments, strain on the NHS, and exacerbate bed blocking issues.

In light of this urgency and as a temporary relief measure until a more permanent funding solution is established, Box Power CIC proposes a practical solution for your consideration. Drawing inspiration from measures already implemented by the European Central Bank, our solution involves requiring banks to simply hold a small amount of non-interest-bearing reserves. The New Economics’ Foundation estimates as an example that a mere 1% reserve requirement could generate approximately £1.3 billion annually.

As this innovative approach could comfortably raise the required amount to either offset the NI increase to them or provide a ring-fenced “Offset” fund, it presents a feasible way to alleviate financial pressures on essential care services without jeopardising fiscal policies or risking a banking crisis and so please urge the Government to consider this proposal?

To demonstrate widespread backing to advocate for sustainability for these vital services, we have we have already garnered enough support across key industry figures, major care providers directly affected by this decision cross-party MP parliamentarians and Peers to show that we have the sector and MP support behind us to warrant this to be explored.

We look forward to your response and confirmation as to your availability to meet to discuss how this could be explored.

Thank you in advance.

Yours sincerely,
Corin & Tricia Dalby