Responding to the Chancellor’s Spring Statement, Nuffield Trust
Chief Executive Nigel Edwards said:
“Amid a cost of living crisis, it is not surprising that the
Treasury will be scrutinising the increased spending on the NHS
raised by higher taxes and looking for cost efficiencies.
“Changes to national insurance threshold announced today will
provide some welcome support to low earners, and will not reduce
the amount of money already committed to health and care*. But by
choosing to put tax cuts above spending the Chancellor has made
it less likely that health and care will see any further
increases in funding during this parliament.
"This underlines that despite a boost from the levy, the NHS will
still face tight budget constraints. Funding increases to the
NHS’s core budget become less generous in each of the next three
years, which is why the Chancellor has doubled the annual
efficiency target to 2.2%. In reality, however, NHS trusts will
need to find even more room for efficiency than that, as at the
same time there will be steep reduction in Covid support despite
the fact this cost pressure is likely to remain in place for some
time yet.
“Just meeting this target is going to be an exceptional stretch.
For over a decade the health services has been trying to uncover
more and more savings while carrying out more procedures but this
has never happened to the speed at which the government hoped. We
also do not yet know the level at which Covid-19 management in
hospitals will hamper efforts to speed up elective recovery and
for how long.
“Making savings within staffing costs will be near impossible
given the shortages across health and care, and the impact of
inflation on costs and pay. The squeeze in living costs will
undoubtedly heap more pressure on exhausted staff once again
grappling with rising numbers of patients in hospital with Covid.
“Banging the well-beaten drum for more savings will not help meet
yet another target. To reach these levels we’ll need to see real
change in the way service works such as investment in more remote
and digital technology, changing how clinicians work, and
rolling-back or adapting work around Covid-19 measures.”
Ends.
Notes to editor:
- Although money from the Health and Care Levy must be spent on
health and social care, there is no direct connection between the
amount raised and the health and social care budget. The total
budget is set separately and was not reduced today.
