Budget small print suggests NHS funding fall

Despite confirmation of an NHS England budget increase of £4 billion in real terms next year, health leaders have warned that wider spending is set to fall.

Despite Chancellor Philip Hammond confirming the promise made by Theresa May in the Summer of annual real-terms funding increases, the Health Foundation think tank has analysed the Budget paperwork and claims that there will be a reduction of £1 billion in other areas of the health budget, such as public health, and doctors' and nurses' training.

The analysis says that the Department of Health and Social Care’s overall budget will only increase by just 2.7 per cent in 2019/20 – less than the 3.3 per cent minimum required just to stand still in the face of ever rising demand and cost pressures, and less than the 3.6 per cent promised by the Prime Minister in the summer. To meet this 3.6 per cent commitment would require an additional £260 million in cash terms.

Anita Charlesworth, director of Research and Economics for the Health Foundation, said that ministers may have to resort to raiding budgets set aside for investment in NHS buildings and technology.

She said: “Day to day spending on the wider health budget which includes funding for doctor and nurse education and training, and public health – and the impact of pensions revaluation – will fall by £1 billion in real terms next year. Capital investment budgets are planned to increase. In recent years the department has raided capital funds to support day to day spending. If the government wants to avoid further cuts to education and public health, it will need to shift all of the planned capital growth to day to day resource budgets.”