Medical funding rises cannot be sustained, new minister says
Tuesday 18th May 2010
The substantial rises in healthcare spending implemented by Labour over its 13 years in office cannot be sustained, it has been stated. Commenting on the issue in his new capacity as health secretary, Andrew Lansley confirmed that spending on the NHS will rise in real terms but efficiency savings will be implemented.
There was considerable debate during the run-up to the general election concerning how the Budget deficit would be brought under control and what impact this would have on medical spending. Since no party won the contest outright, a coalition has been formed between the Conservatives and Liberal Democrats.
Under the terms of the agreement, the latter party has accepted plans to "ring-fence" a real-terms increase in NHS funding every year. The move has not be welcomed by all members of the new administration, with new business secretary Vince Cable noting that the plan may result in deeper cuts in other departments.
Speaking to BBC Radio 4's Today programme, Mr Lansley said the plans for the NHS and other aspects of government responsibility are being developed in the "national interest". He remarked: "And of course that does include action, starting soon, to cut the deficit to deal with the debt crisis."
However, he added: "The Conservative Party were very clear that our mandate was that we would not let the sick pay for Labour's debt crisis, that we wouldn't cut the NHS."
The politician went on to warn that despite the above-inflation hikes in spending on health services, cash flow in the NHS will have to be controlled in order to secure savings.
He commented: "It may well be true ... that in the past there has been a substantial increase in pay and prices in the NHS relative to the rest of the economy. That is not sustainable for the future. What is sustainable for the NHS is that we deliver efficiency savings in the NHS in the same way as the rest of the public sector."
These savings will be reinvested in the service in order to ensure that improved outcomes for patients are delivered, Mr Lansley went on to claim.
There are those who are sceptical concerning the Tories' ability to balance the books while maintaining the level of service required by patients in the UK. For example, Health Emergency chair Geoff Martin suggested that the country faces the prospect of thousands of bed losses, as well as accident and emergency and maternity closures, 24dash reports.
In addition, he predicted that people with both temporary and permanent NHS jobs may be facing tough times, as employment cuts are likely.
He stated: "Andrew Lansley has made clear ... that he will be ratcheting up the level of cuts with savage consequences for our hospitals. Thousands will be out on the streets again when they realise they were conned by the political class during the election campaign on the scale of the cuts agenda."
Meanwhile, the Telegraph noted that as their first act in office, ministers in each department have instructed their staff to begin drawing up plans to reduce expenditure. It added the politicians are braced for the fact that the cuts will be unpopular among the electorate.
It pointed out that prior to the election, the Conservatives pledged to find £12 billion in efficiency savings in their first year in office, with almost half of this expected to come from the NHS.
The government deficit rocketed following the credit crunch, during which a number of major financial institutions had to be saved from the brink of collapse at a huge cost to the taxpayer. It is thought that the repercussions of this intervention will be felt by UK citizens for a considerable length of time in the form of higher taxes and lower public spending.
Those working in the public sector may be particularly at risk over the coming months and years as central funding is withdrawn.
Under the terms of their power-sharing deal, the Conservatives and Liberal Democrats have agreed that a full spending review should be held over the issues of the NHS, schools and what they have dubbed the 'fairer society' agenda.
Those involved in the analysis will report their recommendations this autumn, following a process of consultation involving all tiers of government, as well as firms in the private sector.
One of the organisations taking action early in a bid to reduce spending is NHS Lothian, which has revealed it intends to cut around 700 jobs. This equates to approximately 2.5 per cent of its workforce and it is hoped by bosses the move will lead to savings that run into millions of pounds.
However, sources from the organisation rushed to assure staff members that there will be no compulsory redundancies. Rather, the reductions will occur as employees leave of their own accord and their roles are not filled.
Similar tactics are likely to be echoed around the rest of the Britain. Among those at risk are health professionals with temporary jobs operating in front-line positions. This may result in public unrest if services are believed to be compromised.
Mediplacements chief executive officer Edward Simpson spoke with an air of caution on the election result. He said: "A change of government has got to be good news for the NHS. We all know that efficiency savings have to be made and are imminent; however, we must not forget what happened in 2005-2006, when the Labour administration slashed health spending; resulting in under-manned services and increased patient waiting times.
"The new government needs to listen to NHS departmental managers to fully understand what cost savings can be made that won't affect front-line service provision."
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