DEPARTMENT OF HEALTH PRESS NOTICE
96/359 26th November 1996
STEPHEN DORRELL ANNOUNCES 1.6 BILLION POUNDS BUDGET BOOST
FOR PATIENT SERVICES
HOSPITAL CURRENT SPENDING TO GROW BY 3 PER CENT IN REAL TERMS
"The NHS has once more been given high priority within a tight
Budget for spending, fully reflecting the Government's
commitment to real term increases year on year in health
service spending, " said Stephen Dorrell today.
Welcoming the Chancellor of Exchequer's Budget statement, Mr
Dorrell said:
"Current spending on patient services will grow by Pounds
1.6bn or 2.9% in real terms. Hospital and community health
services current spending will grow by 3% in real terms.
"On capital expenditure, there will be a growing role for the
Private Finance Initiative, which we expect to contribute some
Pounds 900m over the Survey period.
"The Budget increases demonstrate that the Government has
recognised and responded to the challenges facing the health
service. At the same time, we have once again set a demanding
efficiency target for the NHS of 2.7%. These efficiency gains
will be worth some Pounds 525m over and above the new funding
from the tax payer. The new money we have announced today,
matched by the health service's continuing commitment to
securing best value from all its resources, will ensure
financial stability and enable the NHS to make progress on the
ambitious agenda we have set for it".
Prescription charges will increase by 15p from 1 April 1997.
Other NHS charges will also increase: see notes for editors
for details.
NOTES FOR EDITORS
NHS SPENDING (England only)
The tables below set out the Government's expenditure plans
for the NHS in England for 1997-98 to 1999-2000. The Standard
Spending Assessment for Personal Social Services revenue, and
all other local authority services, will be announced shortly
by the Secretary of State for the Environment. The
Government's plans for community care and for PSS specific
grants and capital will be announced at the same time.
Table 1: NHS Current Spending 1996-97 to 1999-00 England - net
(ie Government spending). Figures may not sum owing to
rounding.
Pounds million
Revised
Plan Plan Provisional Plans
1996-97 1997-98 1998-99 1999-00
Hospital and Community
Health Services(1) 23,189 24,367 24,891 25,404
%age real growth 3.0% 0.1% 0.1%
Family Health Services 7,487 7,880 8,085 8,255
%age real growth 3.2% 0.6% 0.1%
Central Health and
Miscellaneous Services 519 512 523 534
%age real growth -3.2% 0.1% 0.1%
Department of Health
Administration 290 283 283 283
%age real growth -4.5% -1.9% -2.0%
NHS Current Total 31,485 33,042 33,782 34,476
%age real growth 2.9% 0.2% 0.1%
Table 2: NHS Capital Spending 1996-97 to 1999-00
England - total spending. Figures may not sum owing to rounding.
Pounds million
Revised Plan
Plan Provisional Plans
1996-97 1997-98 1998-99 1999-00
Hospital and Community Health
Services
- Government Spending 1,543 1,315 1,350 1,395
%age real growth -16.4% 0.6% 1.3%
- Receipts from land sales(1) 310 289 179 152
%age real growth -8.6% -39.3% -16.7%
- PFI investment (1) 65 166 307 422
%age real growth 150.4% 81.3% 34.8%
Other NHS Capital Spending(2) 20 17 17 17
%age real growth -18.9% -2.3% -2.0%
Total 1,938 1,787 1,853 1,986
%age real growth -9.6% 1.7% 5.1%
(1) Estimated
(2) Central Health and Miscellaneous Services and Departmental Administration
Table 3: Department of Health Total Spending
Pounds million
Estimated
Outturn Spending plans
1996-97 1997-98 1998-99 1999-00
Cash terms 33,970 34,940 35,380 36,120
Real terms (1995-96 prices) 33,140 33,420 33,170 33,200
%age real growth 0.8% -0.7% 0.1%
(1) Total Department of Health spending includes both NHS
expenditure and provision for Government spending on personal
social services, including specific grants, credit approvals
and the special transitional grant for local authorities' new
community care responsibilities. The real decrease in 1998-99
is because resources for local authorities' new community care
responsibilities from 1998-99 will be provided through the
Department of the Environment's local government programme.
Total Department of Health spending in 1995-96 was Pounds
32,930 million. NHS Charges from 1 April 1997
Prescription Charges will increase by 15p from Pounds 5.50 to
Pounds 5.65. A four monthly prepayment certificate will
increase by 80p from Pounds 28.50 to Pounds 29.30 and an
annual certificate will increase by Pounds 2.10 from Pounds
78.40 to Pounds 80.50, an increase of 2.7%. Charges for Wigs
and fabric supports will increase by the same percentage.
The maximum charge for a course of dental treatment will
increase from Pounds 325 to Pounds 330.
All optical voucher values will also increase by 2%.
[ENDS]