The Health Foundation’s response to the government’s announcement on NHS finances

The government has today announced its financial plans for the NHS ahead of the Comprehensive Spending Review.

Anita Charlesworth, Chief Economist at the Health Foundation, commented: 'Make no mistake, the NHS is in the midst of an unprecedented financial crisis. Key targets for waiting times are being missed. There is deep concern about the quality of mental health services. Three quarters of trusts are in deficit. NHS providers are expected to end the year £2.2bn in the red. To stop this decline the health service needs the pledged budget increases to arrive sooner rather than later and the government’s confirmation of front-loaded funding is therefore welcome. Funding for NHS England will increase by £8.4bn by 2020/21 in real terms and a large chunk of that funding will be front-loaded.

'However, any move to redefine and shrink the definition of the NHS would be particularly worrying. If some of this new money comes from other parts of the health service – such as public health or training – it would be a false economy and likely to have a negative impact on service and efficiency. Even with additional funding this will be the most austere decade for the NHS since its inception. Public funding for the NHS will fall as a share of GDP from the current 7.4%. The UK already devotes a lower share of its economic wealth to health than most other European countries such as Germany, France and the Netherlands.

'Ring-fenced transformation funding is also needed to accelerate the delivery of the hugely challenging £22bn efficiency savings and the move to new models of care that are essential to future sustainability. And social care funding has to increase significantly to reduce mounting pressure on the NHS.'

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Media contact:

Mike Findlay
T: 020 7257 8047
E: mike.findlay@health.org.uk