NHS chiefs claim record cash injection might not be enough
Health chiefs have claimed that a record £29 billion cash injection might not be enough to save the NHS.
Rachel Reeves announced the bumper increase for 'our most treasured public service' in her spending review, saying it would 'put the NHS firmly back on the path to renewal'.
But there were immediate warnings that the money might not secure the reform the NHS needs.
Ministers have yet to publish a 10-year health plan setting out their intentions, which was due in May.
Sir Jim Mackey, the NHS chief executive, said the sums being ploughed into the health service were 'huge', telling senior managers at the NHS ConfedExpo in Manchester that the NHS budget would now match the GDP of Portugal, which tops £220 billion.
The head of the health service said the NHS had done 'really well' from the spending review. It was now the job of the service to ensure it provides 'better value', he said.
However, the funding increase, which amounts to a 3 per cent annual increase for the NHS, immediately prompted other health leaders to raise fears that it would not result in reform.
Matthew Taylor, the chief executive of NHS Confederation, which represents all health organisations, suggested the Government was 'resorting to magical thinking'.
He said: 'The next four years will be the most important years in the history of the NHS. If we get it wrong, they could be among the last years.'
While welcoming the extra money, Mr Taylor suggested it was not enough to support major reform.
He said: 'We will do what we can with the revenue that we've got. It's going to be really tough.'
Money will be absorbed by staff pay
Mr Taylor, a former aide to Tony Blair, said: 'I remember the last time we tried reform, the government – I – supported 6 per cent a year. That's not the world right now.'
He said the NHS would now face difficult decisions because the extra £29 billion would not be enough to cover the increasing cost of new treatments, with much of it likely to be absorbed by staff pay.
After record pay increases last year, junior doctors – since rebranded as resident doctors – are threatening to strike again, despite being offered the biggest pay award in the public sector.
The chief executive suggested that the funding boost could not guarantee even that waiting time targets would be met.
Sally Gainsbury, a senior policy analyst from think tank Nuffield Trust, said: 'Compared to the settlements for other departments – from policing to education – the NHS deal looks generous.
'But seen in the context of all the promises made by the Government to the British people – to drive down waiting lists, shift care closer to home, rapidly improve tech – and the commitments to meet staff pay demands and rising costs of new drugs, today's settlement soon melts away.'
Sarah Woolnough, the chief executive of The King's Fund, said: 'Despite the tough economic climate, the government has prioritised health services by continuing to increase spending on the NHS for the rest of this parliament.
'A 2.8 per cent average increase in total health department spending – 3 per cent for day-to-day NHS spending – will have been hard-fought for in the spending round negotiations, despite still being lower than the historical average the NHS has received over recent years.
'A key challenge now will be for the NHS to decide how it can deliver most value from the money that has been allocated.
'We know there are already trade-offs happening in the NHS due to tight finances. The Chancellor said she wants the public to have 'an NHS there when they need it'.
'It is hard to see how all the things she mentions – faster ambulance times, more GP appointments and adequate mental health services and more - can be met on this settlement alone.'
The service was urged to ensure that it spends the money wisely.
Jennifer Dixon, the chief executive of charity the Health Foundation, said: 'Given the economic and financial challenges facing the government, a real terms funding increase of 3 per cent a year is a good settlement for the NHS.
'But how far the money stretches and how much it benefits patients – will depend on how much is needed to fund pay settlements for NHS staff and how well the money is spent.'
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