Government health spend and NHS budgets are being squeezed by inflation and population growth, according to new analysis from the Health Foundation’s REAL Centre.
The insight shows that the Department of Health and Social Care’s (DHSC) total budget will increase to £192.2bn from £189.5bn in 2023/24.
In real terms, however, this will only account for a 0.6% increase and a reduction compared to 2022/23, which was closer to £195bn.
NHS England’s (NHSE) budget will remain similar compared to the previous year in real terms, although the Health Foundation highlights that, when the growing and ageing population is accounted for, the budget for NHSE will be 1% lower in 2024/25 compared to the previous year.
Other health spending is set to see a 4.7% decrease in real terms in 2024/25 compared to the previous year. This includes funding for staff education and training, as well as the public health grant.
"We can't go on like this.”
Responding to the analysis, NHS Providers’ deputy chief executive, Saffron Cordery, said that NHS leaders want long-term funding.
"We can't go on like this,” said Saffron. “Trust leaders want to see a shift towards a long-term, multi-year investment across the health service which allows them to plan for the future rather than a stop-start approach”.
The Health Foundation’s analysis also showed that capital funding is set for a 13.6% increase in real terms for 2024/25.
Hannah-Rose Douglas, deputy director at the REAL Centre, said: “The government’s plans to increase capital spending to boost NHS technology is a welcome and significant investment, although it won’t kick in until 2025/26, after the general election.”
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Hannah-Rose added: “There is a long history of promises to spend more on NHS capital and technology, with budgets too often raided to pay for short-term pressures, so it’s essential that this money is spent as intended.”
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