With the news this week of extra money for NHS staff pay rises , perhaps we are seeing the first signs of a change of direction in funding – one very likely to be welcomed by the public, whose concern about the NHS has grown over the last few years. Note:   The bottom line: Understanding the NHS deficit and why it won’t go away 6.3% a year: The highest average increase for the UK NHS over 10 years, between 1999/2000 and 2009/10.

13 reasons for (and some against) spending more on the NHS In 2018/19, the figure was over ten times that amount at £152.9 billion. The rest of the increase is the result of government decisions on priorities across all public spending. Spending on health: how does the UK compare internationally? The tightest period of funding in the last 50 years was during the period from 1975/76 to 1979/80 (average annual real growth of 1.3 per cent). This report examines what can be expected once the current unprecedented period of broadly flat NHS funding in real terms ends in 2014-15. NHS spending as a percentage of GDP: 1950 – 2020

The tightest four-year period of NHS funding was during the period 1950/51 to 1954/55 (an average annual real cut of 2.4 per cent). 04/07/2012 So it needed that much more to deliver care to a growing and ageing population, assuming it made no savings itself.

21/03/2018

NHS and social care funding: the outlook to 2021/22 While government revenues from taxes have remained fairly flat at around 36% of GDP since the 1950s (with the absolute revenue growing in real terms as the economy has grown), the UK now spends much less on things like defence, housing, utilities and transport than we once did – leaving more to be spent on the NHS.Economic growth and political decisions about spending priorities mean that, between 1950 and 2020, spending on the NHS across the UK is likely to have doubled as a share of GDP – from 3.5% to around 7.1%.As the chart shows, however, changes from year to year in both NHS spending and GDP mean that the spending path from 1950 to 2020 has been somewhat erratic.

With strings attached: taking a closer look at the new NHS money 08/03/2017 05/08/2016 UK NHS spend 2017/18 to 2020/21 (based on planned spending by English NHS scaled up to UK)Since the historic peak of 7.6% in 2009/10, spending has been falling as a percentage of GDP.

Such growth is not out of line with the history of NHS spending – indeed, somewhat below the 4% or so per year long run average.

Although NHS budgets have been relatively protected compared to other areas of public spending, the health service has faced the most prolonged funding squeeze in its history over the last decade. This interactive chart shows how spending on the NHS in the UK changed between 1949/50 and 2010/11. As recognised by the NHS’s Five Year Forward View, by 2020 the NHS will need to find savings of around £22 billion in order to balance it...

A year later the NHS laid out plans for how it might handle this gap.

In 2013, NHS England said it faced a funding gap of £30 billion by the end of the decade, even if government spending kept up in line with inflation.

31/08/2017

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