Spending to rise, but critics warn long-term solutions needed

03 September 2019 Seamus Ward

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In today’s one-year spending round announcement, Sajid Javid (pictured) said there would be rises in social care, public health, staff training and capital budgets.

He also confirmed a £6.2bn increase in NHS revenue spending for 2020/21. This is in line with the five-year funding settlement. He reiterated recent announcements on capital funding, including £850m for 20 hospital projects, together with £250m to bring new artificial intelligence technology into the NHS.

Sajid Javid

The Department of Health and Social Care will receive a new multi-year capital settlement at the next capital review. The spending round document said this will look to deliver a smarter, more strategic long-term approach to the country’s health infrastructure, with investment focused on areas where the need is greatest. The plan will include capital to build new hospitals, modernise diagnostics and technology, and help eradicate current critical safety issues in the NHS estate, it added.

Mr Javid said he had included an extra £1bn for adult and children’s social care in the local government settlement. This would help local authorities meet rising demand for services and continue to help stabilise the system. The NHS contribution to adult social care through the Better Care Fund will increase by 3.4% in real terms, in line with the overall NHS long-term settlement.

The government will consult on a 2% adult social care precept on council tax bills that will enable councils to access a further £0.5bn, he added.

‘We can’t have an effective health service without an effective social care system, too,’ he told the House of Commons.

‘The prime minister has committed to a clear plan to fix social care, and give every older person the dignity and security they deserve. I can announce today that councils will have access to new funding of £1.5bn for social care next year.’

The funding was additional to the existing £2.5bn of social care grants. ‘That’s a solid foundation to protect the stability of the system next year and a down payment on the more fundamental reforms the prime minister will set out in due course,’ the chancellor said.

The spending round also confirmed a 3.4% increase to the Health Education England (HEE) budget. This includes an additional £150m for continuing professional development that will provide a £1,000 central training budget over three years for each nurse, midwife and allied health professional. There would also be increased funding for wider education and training budgets to support delivery of the NHS long-term plan.

The public health grant will also increase in real terms.

NHS Confederation chief executive Niall Dickson said: ‘Today’s spending round provides some much-needed extra funding for the NHS and social care, particularly to invest in new equipment and facilities and to help attract and retain staff through additional cash for training. But these are sticking plaster solutions and do not provide the long-term certainty the NHS needs. Funding still falls short in key areas, including capital investment, social care and public health. Public health in particular has suffered major cuts in recent years, and we have an extremely long way to go before that is recovered.

‘Some may believe the NHS funding debate is settled following last year’s announcement of £20.5bn of new funding. But other key areas of health spending were not included, and they have only been partially addressed in this spending round.’

King’s Fund policy director Sally Warren said the extra funding pledges were better than health and social care may have been expecting. However, the chancellor had not provided the investment needed to improve quality and access to services.

‘Adult social care was the most pressing priority facing the government in this spending round, and the chancellor has provided much-needed extra funds. But the money provided today is the bare minimum needed to patch up services for another year and will not be enough to improve services for the people, families and carers who are being let down by the current system. Significant reform and a long-term funding settlement are urgently needed to deliver a fairer, simpler and more generous system.'