Department of Health
Tuesday 14th July 1998
#20 BILLION PLUS BOOST FOR THE NHS - BIGGEST CASH INJECTION IN THE
HISTORY OF THE NATIONAL HEALTH SERVICE
Frank Dobson, Secretary of State for Health, today welcomed the
outcome of the Comprehensive Spending Review - over #20bn provided
for health in the UK, with an #18bn cash boost for the NHS in
England, the biggest cash injection in the history of the National
Health Service to deliver modernisation and reform.
Mr Dobson said:
"The Prime Minister promised that the National Health Service would
get the money it needs. Today, the Government has delivered on that
promise. This is the biggest cash injection in the history of the
National Health Service. It is also a three year settlement which
will provide stability and enable the NHS to plan ahead. Services
will be boosted by capital investment in new hospitals, plant and
equipment totalling nearly #8bn over the period."
"And it is targeted cash for change. For the first time, money
earmarked for modernising and developing services will be put in a
special NHS Modernisation Fund. That money will be ring-fenced so
that it delivers exactly what we want. Every penny will be spent on
improving and modernising the NHS to make it fit for the 21st
Century."
The Secretary of State also welcomed significant increases in
resources for local authority social services - just under an extra
#3 billion over the next three years. He said:
"The increased resources for social services mean that they will be
able to plan ahead, knowing there will be increased funding in each
of the next three years. They will have the resources they need to
provide effective and integrated services to vulnerable people in
society. They will be able to co-operate with the NHS to provide
people with the treatment and care they need.
"In both health and social services we are delivering investment for
reform. I shall be setting challenging targets to ensure we get the
most out of the money we are putting in, and that patients everywhere
get the high quality care they deserve. I know that everyone in the
NHS and in social services will work together to build the more
responsive, high quality, efficient services that we all want to
see."
Amongst the key targets for the Department of Health to deliver by
the end of the Parliament, are:
- to reduce waiting lists to 100,000 below the figure inherited at
the last General Election;
- to deliver higher and more consistent standards of treatment and
care throughout the NHS;
- to begin to reduce inequalities in health, in particular
targeting premature deaths from heart disease and stroke, cancer and
mental illness;
- to improve the lives and prospects of children looked after by
local authorities.
The details of the extra cash investment are:
- the NHS in England will get just under #18bn over the next three
years, an average increase of 4.7% over and above inflation over the
next three years;
- this is the biggest cash increase in the history of the National
Health Service;
- a new NHS Modernisation Fund of #5 billion or more will be
created with ring- fenced cash for targeted improvement in services;
- amongst other things, the extra money will deliver more doctors
and nurses, shorter waiting lists and new equipment for hospitals;
- Personal Social Services in England will get just under #3bn
over the next three years, an average increase of 3.1% over and above
inflation over the next three years.
Key Figures #million
1998-99 1999-00 2000-01 2001-02 Total
increase
over 3 year
period
Total Department
of Health [1,2] 37,169 40,228 43,129 45,985 + 17,835
NHS 36,507 39,581 42,415 45,179 +17,654
real growth 5.7% 4.5% 3.9% average 4.7%
NHS current 36,279 39,301 42,062 44,768
NHS capital [3] 228 280 352 411
Personal Social
Services 8,477 8,915 9,408 9,906 +2,798
real growth 3.6% 3.0% 2.7% average 3.1%
Through
Standard
Spending
Assessments 7,815 8,268 8,693 9,100
Through
Grants [4] 662 647 [5] 714 806
1 Figures may not sum due to rounding
2 This line includes all NHS Spending, plus Department of
Health-funded spending on PSS
3 Total capital investment in the NHS is shown in the table
below
4 This shows Department of Health-funded spending on Personal
Social Services, which comprises mainly special, specific and
capital grants to local authorities, credit approvals and a
grant to the Central Council for Education and Training in
Social Work
5 The reduction in 1999-00 reflects the transfer of
responsibility for grants for support of asylum seekers, other
than unaccompanied children, to the Home Office.
Health Capital Investment #million
1998-99 1999-00 2000-01 2001-02
Net Public Capital[1] 1,195 1,390[2] 1,710 1,948
Net receipts from NHS
trust and Retained
Estate receipts
(estimated) 349 272 272 272
PFI investment
(estimated) 310 610 740 690
Total 1,854 2,272 2,722 2,910
real growth 19.4% 16.9% 4.3%
1 Includes resources for IT, which will be a mixture of current and
capital expenditure
2 Includes capital costs for the set up of the Food Standards Agency.
Notes for Editors
1. The Chief Secretary to the Treasury announced the start of the
Comprehensive Spending Review in a statement to the House of Commons
on 11 June 1997. The Review had been promised in the 1997 Labour
Election Manifesto.
2. The Chancellor of the Exchequer announced the results of the
Comprehensive Spending Review in a Statement to the House of Commons
on Tuesday 14 July 1998.
Press enquiries to Department of Health Press Office (Roy Sutherwood
210-5225, Andrew Harrison 210-5229).
# = pounds sterling