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Author Topic: Budget 2009: NHS asked to cut £2.3bn from plans in 2010-11  (Read 2111 times)

roger

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Budget 2009: NHS asked to cut £2.3bn from plans in 2010-11
« on: April 26, 2009, 09:37:42 pm »

Budget 2009: NHS asked to cut £2.3bn from plans in 2010-11

22 April, 2009 | By Sally Gainsbury HSJ

The Department of Health has been asked to contribute £2.3bn to the Treasury’s £5bn of public spending cuts in 2010-11.

In his Budget published this afternoon, chancellor Alistair Darling has reduced the DH’s overall resource expenditure limit for 2010-11 by £2.3bn to £104bn.

The NHS’s share of that has been reduced by more: down £2.6bn from £104.6bn as planned in last year’s Budget, to £102.3bn.

The Budget also sets out in where it expects the NHS to find new efficiencies. This includes £500m a year through improved commissioning and lower hospital, community care and mental health costs (achieved by an extension of the payment by results tariff) and a further £500m a year through reducing lengths of stay in hospital.

The NHS is expected to make another £100m saving to its annual costs through collaborative procurement and improving back office functions.
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roger

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Re: Budget 2009: NHS asked to cut £2.3bn from plans in 2010-11
« Reply #1 on: April 26, 2009, 09:38:00 pm »

Public spending cuts will be worse than predicted - Institute for Fiscal Studies

24 April, 2009 | By Sally Gainsbury  HSJ

Public spending will be cut by 2.3 per cent a year in real terms from 2011-12 onwards, analysts at the Institute for Fiscal Studies have said.

The IFS’s prediction is far worse than the 0.7 per cent real terms growth described in the chancellor’s Budget.

IFS research fellow Gemma Tetlow said that once interest payments on the government’s growing debt and relatively fixed social security payments are factored into the 0.7 per cent growth figure, government departments such as health, education and the police would be left with an average cut of 2.3 per cent a year.

Ms Tetlow said the effect on the public sector would “feel like the end of the last Conservative government” while the actual figures would be the tightest since the end of the 1970s.
Clawback

Meanwhile, Conservative shadow health secretary Andrew Lansley accused the Treasury of “burying” a clawback of the NHS’s £1.7bn surplus in the Budget.

The Conservatives base their claim on the removal of £1.5bn from the Department of Health’s expenditure limit for 2008-09 in the Budget book. As those funds have not been added to the DH’s allocations for subsequent years, Mr Lansley claimed they have been clawed back, rather than carried forward as might be expected.

However, the Treasury and DH have told HSJ this is not the case. Arcane financial reporting practices mean the Budget only reports actual spending for a year and the surplus has been safely banked in the government’s overall reserves, ready to be called on by the DH when it needs it.
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roger

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Re: Budget 2009: NHS asked to cut £2.3bn from plans in 2010-11
« Reply #2 on: April 26, 2009, 09:40:58 pm »

Budget 2009: Improve NHS productivity or cut services - King's Fund

22 April, 2009 | By Dave West HSJ

The NHS will face “significant cuts in its services” from 2011 unless it can become more productive, the King’s Fund said in response to today’s Budget.

Chief executive Niall Dickson said: “This is a wake-up call for the health service - no matter who is in power from 2011 the NHS will have to manage with very low or no growth in its funding.”

NHS chief executive David Nicholson has told HSJ planned allocation increases are “safe” until 2010-11 despite a reduced overall resource expenditure limit. However, in the next comprehensive spending review period there will be “significantly lower growth” than had been expected.

Mr Dickson said this meant the present year and next would be “relatively benign”. He added: “The real message from the Budget is that from then on the NHS will have to be much more productive or make significant cuts in its services.”
Short termism

He said the challenge was to improve productivity, which has been falling for five or six years.

“While a degree of short termism is inevitable, what the health service must avoid is crude cost cutting measures, such as freezing posts and delaying care to patients. This would ultimately leave the NHS in a poorer state when the recovery begins.

“Efficiency savings are possible but what is needed are evidence-based measures that help the front line improve the way it uses resources.”

Mr Dickson said health and social care should be considered together, higher quality and safer care can be cheaper, and services should be redesigned to be more productive.
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roger

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Re: Budget 2009: NHS asked to cut £2.3bn from plans in 2010-11
« Reply #3 on: April 26, 2009, 09:59:39 pm »

Budget 2009: NHS privatisation should be victim of savings, says union
The largest trade union in the country has said government efficiency savings should be targeted at the “costly, creeping privatisation” of the NHS.


Unite said it was concerned the growing role of the private sector was “draining resources from public services”.

Assistant general secretary Gail Cartmail said: “No area of the public sector – education, health and local government – will be spared these ‘efficiency savings’.

“It doesn’t make sense to curb budgets as people hit by the recession need public services all the more.

“We are seriously concerned by the costs of privatisation. The NHS is the most obvious example where the privatisation agenda has been aggressively promoted by private healthcare companies.

“The first candidate for ‘efficiency savings’ should be these misguided excursions into privatisation in all its guises.”

The Department of Health is expected to contribute £2.3bn to chancellor Alistair Darling’s £5bn of public spending cuts in 2010-11. However, NHS chief executive David Nicholson told HSJ these were accounted for in the already-planned allocations uplift, and tariff efficiency savings of 3 per cent and 3.5 in 2009-10 and 2010-11.
 
 
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