Responding to the statement given this afternoon in the House of Commons by Chancellor Rachel Reeves, Anita Charlesworth, the Health Foundation’s Director of Research and REAL Centre, said:
‘The revelation that there is a £22bn shortfall in the public accounts underlines the difficult decisions ahead.
‘Pausing to review the new hospital programme to ensure that it does deliver what the NHS needs is sensible. Nevertheless, given the woeful state of NHS infrastructure following years of under-investment, this will be a major concern for people across the country desperate to see improvements to their local hospitals. After years of short-term decision-making, a more coherent approach to capital investment is essential.
‘Modernising the NHS and unlocking productivity improvements requires sustained capital investment to fix crumbling buildings, replace outdated equipment, increase capacity in primary care and diagnostics, and develop the technology that is critical for 21st-century health care. Our projections indicate that the annual capital budget would need to increase from £12.6bn this year to £20.5bn by the end of parliament (2029/30) to provide the improvements needed.
‘Implementing the pay review body recommendations for NHS staff is an important step forward and it is encouraging that the government has made progress in its negotiations with the BMA. However, there are big questions over how these pay increases will be funded, with a significant proportion of the cost expected to come from additional efficiency savings. It’s very hard to see where these savings can come without affecting patient care.
‘It is deeply disappointing that the government has once again delayed long overdue reforms to cap the costs of care. After decades of political neglect, the social care system is in desperate need of reform to improve access to care and provide greater protection for people and their families against significant care costs.’
