Monday 23 May 2016

More medicine needed? The health of health finances revisited

More medicine needed? The health of health finances revisited A new report which says there will be a shortfall in the NHS budget of at least £5bn, quite likely £10bn, and in the worst caseas much as £16bn by 2020. In the light of further analysis and events since the election, we estimate that the pressures on health services are now in the range £35-40bn and the savings achieved will be in the range £16-22bn. The Government’s assessment is of £30bn pressures against a £22bn target for savings, with £8bn promised in the 2015 CSR to fill the gap. CIPFA believes there will be an additional gap of £5-16bn.

The front-loading of promised financial support in 2016/17 and the £1.5bn planned increases in the Better Care Fund are welcome, but too modest. The effect of the Government’s actions will be to maintain the short-term year-on-year mentality evident in the Department of Health’s responses to the projected NHS overspends of 2015/16. Chartered Institute of Public Finance and Accountancy

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