HFMA statement on increased NHS funding

17 June 2018

Responding to the announcement of increased funding for the NHS, HFMA chief executive Mark Knight said: ‘The announcement of extra funding for the NHS is much needed and welcome recognition from the government of the financial stress the NHS has been under over recent years.

‘However, it is less than we had hoped for. Any additional funding is welcome, but we need to recognise that an average annual real terms increase of 3.4% is below the average of 3.7% annual growth since the creation of the NHS in 1948. The extra cash will help address current shortfalls, but it is unlikely to be sufficient to meet ever-increasing demand, support the transformation and integration of services, and improve services such as cancer and mental health.

‘We also cannot look at the NHS in isolation, we need to see parallel investment in social care and public health. NHS organisations are also facing a lack of capital funds, with many struggling to operate with outdated buildings and equipment.

‘We look forward to seeing additional detail supporting the announcement, including the impact on the wider health budget. But it looks like the NHS is not out of the woods and difficult choices will have to be made – not only about how the new funds should be spent, but the entirety of the NHS budget.’