NHS Confederation responds to the Spring Statement

Responding to the Chancellor’s Spring Statement Matthew Taylor, chief executive of the NHS Confederation, said:

“The government has had to make some very difficult decisions due to the precarious state of public finances. We understand the need to stabilise public finances in the short-term and that this will require cost-cutting measures across government departments as well as the NHS.

“Our members will work with the government and NHS England to do everything possible to reduce the NHS deficit and improve productivity. We all recognise that health budgets have been protected compared to other departments. But the abolition of NHS England and proposed running cost cuts to integrated care boards are coming at a very challenging time with services struggling to recover performance and begin to work towards the government’s three shifts.

“The reality is that these cuts will require major changes and they will inevitably make the task of delivering long-term transformation of the NHS much harder. Much of trust and ICS leaders’ focus will need to go on stabilising the NHS in the short term as they prioritise patient care, but we also need to ensure we get the right balance between recovery and reform given the opportunity provided by the upcoming ten-year plan. The danger is that we go too far and leave little to no capacity to deliver this long-term transformation.

“Our members have told us that capital funding is going to be vital for improving productivity and cutting waiting lists. Our recent discussion paper concluded that ministers are likely to need several options to raise capital, including shared investment models with private capital. Private finance could free up public capital to concentrate on tackling the urgent repairs needed to drive down the NHS’s £13.8 billion maintenance backlog.

“We welcome the government’s commitment to help people continue working or return to work when they can, as this is not just good for their health but vital for the country’s economy as well.  Our analysis with the Boston Consulting Group (BCG) showed that reintegrating between half and three-quarters of people who have dropped out of the workforce for reasons of ill health since 2020 could deliver a major boost to the UK’s GDP and unlock billions in fiscal revenue.”