With Labour delivering its budget for 2024, HTN takes a look at what the latest measures mean for the NHS, as chancellor Rachel Reeves announces an increase in day-to-day spending for public services by 3.3 percent on average in real terms over this year with an increase of £22.6 billion in the day-to-day health budget, and a £3.1 billion increase in the capital budget over this year and the next.
Acknowledging the Darzi report into the state of the NHS, covered by HTN here, Reeves states that NHS staff “do a remarkable job, but it is clear that in so many ways we are moving in the wrong direction”. With the new 10-year plan for the NHS expected in spring 2025, Reeves calls reforms “vital” and acknowledges that they must come alongside investment. As such, the budget sees the announcement of downpayment on that plan, aiming to support the NHS to achieve 2 percent productivity growth next year.
Reeves refers to the £22.6 billion increase in the NHS’s day-to-day health budget as the “largest real-time growth in day-to-day spending for the NHS” outside of COVID since 2010.
Areas of focus for the funding are to include £1 billion in capital investment to “address the backlog of repairs and upgrades” with regards to “outdated” NHS infrastructure, and provision of £1.5 billion in capital funding focusing on increasing capacity through new news, hospitals, diagnostic tests, surgical hubs and diagnostic centres.
Health secretary Wes Streeting is deliver further details of the New Hospital Programme in the new year, Reeves adds, with work to “continue at pace”.
Concluding her statement, Reeves emphasises that the efforts to rebuild the NHS should result in waiting lists standing at “no longer than 18 weeks”.
Other points of interest from Labour’s budget include a package of measures designed to “disincentivise activities that cause ill health” and “support the government’s mission to fix the NHS”, such as renewing the tobacco duty escalator, introducing a new vaping duty at a flat rate, and increasing the soft drinks industry levy to help tackle obesity and related harms.
Labour and the NHS
Last week we highlighted how the Department of Health and Social Care launched an open call for comment asking for feedback on the health service and sharing intention to “have the biggest ever conversation about the future of the NHS”.
In September HTN examined the speech from Wes Streeting at the Labour Party Conference 2024, where he called for a tech- and data-driven reform of the NHS, citing “grim” results from the Darzi report and pledging to tackle long waiting lists and create “a digital healthcare service powered by cutting-edge technology”.
We explored Lord Darzi’s report with a focus on digital following its publication; and we also explored industry reactions here. Later this month (20 November, 11am-12pm) we will be hosting a panel discussion through which we welcome health and care leaders to discuss the report with a digital focus to drive change – sign up for your free NHS ticket here.
HTN asked our audience which of Labour’s focus areas should take priority for the government following the election here. We also highlighted a report from think tank Policy Exchange outlining the “ruthless prioritisation of policy” required from Wes Streeting, and recommending areas of focus.
