Confederation calls for sustained investment

05 June 2018

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A report on future funding needs, commissioned by the confederation, concluded that even to provide existing levels of services, NHS funding will have to increase by an average of 3.3% a year over the next 15 years, with slightly bigger rises in the short term to address immediate funding problems.

The report, by the Institute for Fiscal Studies and the Health Foundation, said this would take health spending as a proportion of national income from 7.3% to 8.9% by 2033/34. The long-term average for NHS funding rises is 3.7%.Niall Dickson

Producing modest improvements in service would require funding increases of an average of 4% a year, with 5% in the short-term. This would increase spending as a proportion of national income to 9.9% and allow the NHS to catch up with waiting lists, increase capital spending and tackle some of the underfunding in mental healthcare.

At the same time, spending on adult social care would need to rise by 3.9% a year over 15 years to maintain services.

The report, Securing the future: funding health and social care to the 2030s, said it was likely taxes would have to rise to fund the increases. It estimated this would be equivalent to £1,200 to £2,000 per household over the 15-year period, though it was projected that household income would rise by £8,500 over the same period.

Chief executive  of the NHS Confederation Niall Dickson (pictured) said: ‘Unless we tackle the funding issue, and build up the workforce, we will see further strain on NHS finances and services. Yes, there are more efficiencies to be made and our services need to be much better at supporting people in the community, but if we want a high-quality NHS and care system we will have to pay for it.

‘Without new ways of delivering services and sustained investment, NHS and care services will not cope, and we will face a decade of misery.