New Health Foundation post-Budget analysis of NHS spending

Today we publish a series of new charts showing how health spending has changed over time, based on analysis from the Health Foundation’s REAL Centre. Following Wednesday’s Spring Budget and the latest forecasts from the Office for Budget Responsibility, the analysis shows:

• adjusting for inflation, planned total health care spending in England will decrease by £1.5bn (-0.8%) in 2023/24, and increase again in real terms by £1.9bn (1.0%) in 2024/25
• this means that planned health care spending in England will increase by 0.1% a year on average in real terms in 2023/24 and 2024/25. 
• this is well below the average seen in the decade preceding the COVID-19 pandemic (2%), and the historical average of 3.9% in England since 1979/80. 

Anita Charlesworth, Director of the REAL Centre at the Health Foundation, said:

‘As inflation continues to erode the health budget, and with spending due to rise well below the historic average, it is vital that the new pay award is funded from central government and not existing NHS budgets. NHS capital budgets, used for purchasing new equipment and much needed building projects, must also not be raided to meet short term funding pressures.’ 

These charts will be updated regularly following the spring and autumn fiscal events. We will also be producing similar charts for social care in the coming days.

Media contact

Creina Lilburne
External Affairs Manager
020 7664 4647 / 07941 156827
creina.lilburne@health.org.uk