Nuffield Trust analysis is further evidence of NHS's intractable financial challenges

Responding to the Nuffield Trust analysis that suggests the Chancellor needs to uplift the budget for the Department of Health and Social Care by at least 3.6% just for the NHS to “stand still” Matthew Taylor, chief executive of the NHS Confederation, said:

“This analysis is further evidence of the intractable financial challenges facing the NHS which stem from a decade and a half of historically low investment. Lord Darzi’s recent report highlighted that the NHS has been starved of capital and that the 2010s were the most austere decade for revenue spending since the NHS was founded.

“So the fact that a leading think tank now thinks that even a 3.6% revenue increase can only keep the NHS standing still puts that historically low investment into clear perspective. 

“NHS leaders understand the very difficult fiscal position the government is in and would welcome the 4% increase that is reportedly being considered for the Budget. But that 4% will need to go a long way as it needs to cover new pay deals, meet growing demand, recover performance against key targets and transform the way local services are delivered. That won’t be a given when NHS organisations are already having to meet record high efficiency targets. 

“Our members report that a big injection of capital funding is required to make sure their staff can be as productive as possible. New investment in the NHS should not be regarded as a drain on public resources but as crucial to driving economic activity and getting more economically inactive people back into work.”