The amendment was defeated by 307 votes to 182 in a vote in Parliament this afternoon.

Liberal Democrat Treasury spokesperson Daisy Cooper said: ‘Labour MPs today have voted for a health tax on GPs, dentists, pharmacies, hospices and care homes, and it is patients who will pay the price.

‘The Liberal Democrats are proud we have led the fight to exempt health and care providers from this misguided tax hike, and we will not give up now.

‘On 6 April worried social care providers and GP surgeries are going to be hit with bills they simply cannot afford. Rachel Reeves must finally see sense, U-turn on this disastrous policy and exempt health and care providers from this damaging jobs tax.'

Professor Martin Green, chief executive of Care England, said: ‘Today, we bear witness to a devastating blow that seals the fate of thousands of care providers across our nation. In a callous act of indifference, the Government has dismantled the core principles and ethos of the Care Act, abandoning millions who depend on vital support. This is indeed a dark day for community-based care, not only a ruthless assault on those we protect and employ, but on the very fabric of our democracy.'

Liz Jones, National Care Forum policy director, said: 'Today the Government has chosen to ignore the very clear warnings from care and support providers across the nation, as well as the very considered House of Lords amendments to the National Insurance Contributions (Secondary Class 1 Contributions) Bill. In choosing to vote down the amendments that would have protected care and support providers from the devastating impact of the employer's National Insurance Contribution changes, the Government inflicts a devastating blow on already fragile, underfunded and undervalued essential public services which millions of people, and their families, depend on for vital support. This is a dark day for our sector, the people we employ and the people we support.'

Speaking ahead of the vote, Conservative leader Kemi Badenoch called on Prime Minister Sir Keir Starmer to exempt hospices from NICs warning that it could effect end-of-life care.

Responding, the PM said: ‘We have already invested £100m for adults and children's hospices with an additional £26m in funding for the children's hospice grant.'