Brexit Dividend to Cover NHS Funding Settlement: Assisted by Undisclosed Tax Increases? (BBC News)

Summary

The announcement of a 3.4% annual funding increase, over the next five years, represents a significant and politically astute compromise development, in advance of the NHS’s 70th birthday. Wise heads in the Treasury wanted to limit annual NHS budget increases at around 2%, while health leaders made plausible demands for 4% per year. The NHS budget by 2023 will be around £20 billion per year higher than now.

Anticipated year-by-year funding increases in real terms:

  1. In 2019-20 – 3.6%.
  2. In 2020-21 – 3.6%.
  3. In 2021-22 – 3.1%.
  4. In 2022-23 – 3.1%.
  5. In 2023-24 – 3.4%.

The last five-year settlement, announced in 2015, increased the NHS England budget by around £8.4 billion; this too was applauded as a wonderful opportunity for the NHS at the time.

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Reference

Triggle, N. (2018). NHS gets £20bn ‘birthday present’. London: BBC Health News, June 17th 2018.

“The announcement means extra money will also be made available for Scotland, Wales and Northern Ireland, although it will be up to the Welsh and Scottish governments to decide how that is spent”.

The official Government funding programme announcement:

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Reference

Prime Minister sets out 5-year NHS funding plan: the NHS will receive increased funding of £20.5 billion per year by the end of 5 years. London: Department of Health and Social Care, HM Treasury [and] Rt Hon Jeremy Hunt MP, June 18th 2018.

This relates to:

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Reference

NHS funding. [Details of NHS Government funding programme – NHS settlement numbers. Unbadged document]. London: Department of Health and Social Care [and] HM Treasury, June 18th 2018.

A Ten Year Plan?

The Prime Minister is emphatic that the money must be used to improve tangible patient care, rather than being misappropriated by potentially wasteful practices (unacceptable variations in procurement, productivity etc.) or sunk in further bureaucracy:

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Reference

Edwards, N. (2018). How to spend it: what to do with new NHS money. [Online]: Nuffield Trust, June 14th 2018.

Further BBC News analysis:

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Reference

Triggle, N. (2018). NHS funding: PM calls for 10-year plan to spend cash [re-titled later, as Tax rise need to help pay for £20bn NHS boost, says PM]. London: BBC Health News, June 18th 2018.

Arrangements for social care are “the big unknown” as yet:

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Reference

Pym, H. (2018). NHS plan: What we still need to know. London: BBC Health News, June 18th 2018.

More on the political dimension:

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Reference

Kuenssberg, L. (2018). ‘No magic money tree’. London: BBC Politics News / BBC Health News, June 18th 2018.

More on the economic dimension:

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Reference

Ahmed, K. (2018). The NHS, taxes and that ‘Brexit dividend’. London: BBC Business News / BBC Health News, June 18th 2018.

Earlier Contributions: Likely Drivers Behind the Eventual Settlement

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Reference

The Lord Darzi Review of Health and Care: interim report. London: Institute for Public Policy Research, April 2018.

Further:

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Reference

Joint letter to the Prime Minister on NHS funding: a joint letter sent from the Nuffield Trust, The King’s Fund and The Health Foundation outlining our perspectives ahead of further announcements expected on NHS funding. London: King’s Fund / Health Foundation / Nuffield Trust, June 4th 2018.

August 2019 Update: An Extra £1.8 Billion

Prime Minister Boris Johnson announced a one-off £1.8 billion funding injection for NHS hospitals in England, of which about £1 billion was to be allocated to new equipment and upgrades to 20 hospitals. This amount was additional to the extra £20 billion per year by 2023 announced by former prime minister Theresa May in 2018.

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Reference

Boris Johnson announces £1.8bn one-off cash boost for NHS hospitals. London: BBC Health News, August 4th 2019.

The 20 hospitals receiving £850 million:

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Reference

Hospitals in England set to receive £850m revealed [subsequently re-titled as: 20 NHS building projects given green light]. London: BBC Health News, August 5th 2019.

This relates to:

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Reference

PM announces extra £1.8 billion for NHS frontline services. [Online]: Department of Health and Social Care / HM Treasury / Prime Minister’s Office / 10 Downing Street / Rt Hon Matt Hancock MP / Rt Hon Sajid Javid MP [and] Rt Hon Boris Johnson MP, August 5th 2019.

All smoke and mirrors? Further analysis from BBC News:

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Reference

Triggle, N. (2019). Is NHS buildings boost all it seems? London: BBC Health News, August 5th 2019.

A BBC Reality Check piece:

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Reference

Pym, H. (2019). NHS ‘reality check’ for PM Boris Johnson. London: BBC Health News / BBC Reality Check, August 10th 2019.

Full circle?

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Reference

General Election 2019: Don’t politicise health service – NHS boss. London: BBC Health News, November 4th 2019.

About Dementia and Elderly Care News

Dementia and Elderly Care News. Wolverhampton Medical Institute: WMI. (jh)
This entry was posted in BBC News, Charitable Bodies, Commissioning, Department of Health, Department of Health and Social Care (DHSC), Health Foundation, In the News, Integrated Care, King's Fund, National, NHS, NHS England, Northern Ireland, Nuffield Trust, Quick Insights, Scotland, Standards, Statistics, UK, Universal Interest, Wales and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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