The Pharmaceutical Journal
Vol 273 No 7308 p76
17 July 2004

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News summary

NHS funding to outstrip inflation by 7.2 per cent

Spending on the NHS in England is to increase by 7.2 per cent above inflation for the next three years. This continues the rate of increase started by the Government in 2002–03.

Following this year’s spending review (PDF 380K), the Chancellor of the Exchequer has decided that NHS spending in England will rise to £76.4bn in 2005–06, £83.8bn in 2006–07 and £92.1bn in 2007–08.

A promised outcome of the additional spending is that there will be more medicines, treatment, support and advice for the 17.5 million people who live with chronic conditions, such as diabetes and asthma, so that they can manage their conditions better.

Some of the money to fund the increases is to be raised by cutting the number of civil servants and other efficiency savings.

The Department of Health’s contribution to these savings is to be made through the loss of 720 civil service posts and a further 5,000 staff from bodies that operate at arm’s length from government, such as the Health Development Agency and the National Patient Safety Agency. Half of the 42 agencies involved are to be abolished or merged (PJ, 29 May, p664). Over 1,000 DoH posts are to be moved away from London and the South East by 2010.

Planned DoH efficiency improvements include making better use of NHS buying power and information technology.

Total spending in Scotland is to rise by an average annual rate in real terms of 3.5 per cent to £22.75bn in 2005–06, £24.2bn in 2006–07 and £25.5bn in 2007–08. The Scottish Executive has been conducting its own spending review and is expected to announce how the money will be spent in September.

Wales has been given a larger overall increase than Scotland, with a planned annual average increase of 4 per cent in real terms to £11.8bn in 2005–06, £12.8bn in 2006–07 and £13.6bn in 2007–08. The National Assembly for Wales will publish its draft spending plans in October.

David Pruce, director of practice and quality improvement at the Royal Pharmaceutical Society, said: “The Treasury has highlighted areas where pharmacists can play a leading role in delivering care to patients, particularly chronic diseases. The Society looks forward to learning more about the details of the planned investment in the coming weeks.”