I think it should be sick leave.
They're trying to jip you - because sick leave that's not taken generally can't be carried over so you lose it. So basically you're using up annual leave instead of sick leave that you'll lose if you don't use it.
My workplace has flex so I just use that, because if I have no flex it would be sick/personal leave.
I must have been lucky where I worked. They were not too fussed about appointments, as long as the work was done. I used to try and schedule either around lunch, so my lunch break absorbed some of the time or at the end of the day, so I would just leave work and go home after the appointment. If I did that, I would try to come in earlier and have a shorter lunch break that day.
I think they should allow you to either make up the time, or take it from your sick leave.
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