NHS financial problems becoming ‘endemic’

Despite the extra money the government has promised to contribute, there is no guarantee the service will get back on track, as levels of deficits are ‘becoming normal practice’.

In Chancellor George Osborne’s Spending Review, plans were unveiled to increase the NHS budget by £8.4 billion above inflation this Parliament. However, the NAO have argued it is not clear if the figure would lead to stability.

The auditors maintained that much would depend on how NHS England’s five-year plan for reforming services panned out.

In a bid to save £22 billion by 2020, the government set out the Five-Year Forward View, which involved providing more care out of hospitals. However, the NAO contended the scheme relied on ‘untested’ plans which had ‘limited evidence’ of producing successful results.

Amongst its concerns, auditors highlighted growing levels of deficits in the health service. This year, NHS trusts have forecasted a deficit of more than £2 billion.

Meg Hillier, chair of the House of Commons' Public Accounts Committee, said: "It is simply unacceptable. The strain placed on NHS trusts shows no sign of abating."

However, Health Minister David Prior has argued the extra money for the NHS in the coming years showed the government’s commitment to the health service and predicted finances would be much stronger next year.

He said: ”Hospitals must now show tight financial grip and fully introduce our measures to reduce expensive temporary staffing and drive through the productivity and efficiency improvements.”

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