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NHS funding: PM calls for 10-year plan to spend cash NHS funding: Brexit dividend 'won't be enough' for £20bn boost
(35 minutes later)
The NHS must come up with a 10-year plan to best use its £20bn funding boost in England, Theresa May will say. The government will not reveal how a £20bn funding boost to the NHS is being funded until the autumn budget - but savings through Brexit will not be "anything like enough" to pay for it.
In a speech in London, the prime minister will stress the NHS must ensure "every penny is well spent". Health Secretary Jeremy Hunt also said money could also be raised through taxes and expected economic growth.
It follows Mrs May's announcement that the NHS budget would rise by 3.4% a year on average over the next five years. It comes after Theresa May said the NHS funding boost would be partly funded by a so-called "Brexit dividend".
But the PM is under continuing pressure to explain where the money will come from to pay for the rise. Labour's John McDonnell called the funding model "not credible".
On Sunday Mrs May promised that, by 2023, an extra £20bn a year would be available for the health service in England on top of any rises to keep up with inflation. The prime minister announced at the weekend that the NHS budget would rise by 3.4% a year on average over the next five years.
Speaking to BBC Breakfast, Mr Hunt said the "exact details" of how the increase would be funded "will be announced in the budget".
He said: "We won't be paying subscriptions to Brussels... but that alone won't be anything like enough."
"We are clear there will be an increased burden of taxation," he said, adding that money could also come from economic growth.
Mrs May promised that by 2023 an extra £20bn a year would be available for the health service in England on top of any rises to keep up with inflation.
This year's NHS budget is £114bn.This year's NHS budget is £114bn.
The average annual rise since its foundation in 1948 is 3.7%, with average increases of around 6% during the Blair and Brown Labour governments between 1997 and 2010, which then plummeted during the austerity years.The average annual rise since its foundation in 1948 is 3.7%, with average increases of around 6% during the Blair and Brown Labour governments between 1997 and 2010, which then plummeted during the austerity years.
While the spending commitment has been widely welcomed by those within the health service, Mrs May has been asked to explain how the extra spending will be paid for.While the spending commitment has been widely welcomed by those within the health service, Mrs May has been asked to explain how the extra spending will be paid for.
Her answer that the increase will be partly paid for by a "Brexit dividend" has already been questioned, with Labour saying the government was relying on a "hypothetical" windfall. Shadow chancellor Mr McDonnell criticised the idea that the funding increase could be partly paid for by a "Brexit dividend".
There has been criticism from within her own party as well. The Conservative chair of the House of Commons' Health and Social Care Committee, Sarah Wollaston, said the idea of a Brexit dividend was "tosh". He said: "The speculation about where it's coming from, particularly the Brexit dividend, is just not credible as far as many commentators are saying."
And Paul Johnson, director of economic think-tank the Institute for Fiscal Studies (IFS), said the only way the rise could be paid for was by an increase in taxes. There has been criticism from within her own party as well.
The Conservative chair of the Commons' Health and Social Care Committee, Sarah Wollaston, said the idea of a Brexit dividend was "tosh".
And Paul Johnson, director of economic think-tank the Institute for Fiscal Studies, said the only way the rise could be paid for was by an increase in taxes.
He said the financial settlement with the EU, plus the UK's commitments to replace EU funding, "already uses up all of our EU contributions" for the next few years.He said the financial settlement with the EU, plus the UK's commitments to replace EU funding, "already uses up all of our EU contributions" for the next few years.
Year-by-year funding increasesYear-by-year funding increases
All figures are above inflationAll figures are above inflation
Mrs May has not ruled out tax rises, and there will be much interest in what she says about that in her speech on Monday morning.Mrs May has not ruled out tax rises, and there will be much interest in what she says about that in her speech on Monday morning.
The PM will fill in some of the details on her proposed 10-year plan, which she will say must ensure "every penny is well spent".The PM will fill in some of the details on her proposed 10-year plan, which she will say must ensure "every penny is well spent".
"It must be a plan that tackles waste, reduces bureaucracy and eliminates unacceptable variation," she will say."It must be a plan that tackles waste, reduces bureaucracy and eliminates unacceptable variation," she will say.
Mental healthMental health
Mrs May has asked NHS England boss Simon Stevens to help draw up the plan with the input of senior staff working in the health service.Mrs May has asked NHS England boss Simon Stevens to help draw up the plan with the input of senior staff working in the health service.
Work on the plan will get under way almost immediately, with final proposals expected towards the end of the year.Work on the plan will get under way almost immediately, with final proposals expected towards the end of the year.
Four main areas of improving the efficiency of the NHS will be looked at:Four main areas of improving the efficiency of the NHS will be looked at:
The plan will build on the five-year strategy Mr Stevens set out in 2015.The plan will build on the five-year strategy Mr Stevens set out in 2015.
A big part of that was shifting care out of hospitals and into the community.A big part of that was shifting care out of hospitals and into the community.
Ms May is known to be keen to see a specific stress on mental health and cancer this time. Mrs May is known to be keen to see a specific stress on mental health and cancer this time.
The PM will also recall her own reliance on the NHS for help when she was diagnosed with type one diabetes, saying: "I would not be doing the job I am doing today without that support."The PM will also recall her own reliance on the NHS for help when she was diagnosed with type one diabetes, saying: "I would not be doing the job I am doing today without that support."
Meanwhile, councils have questioned why the funding announcement did not also include more money for social care and public health, which covers everything from stop smoking services to obesity prevention.Meanwhile, councils have questioned why the funding announcement did not also include more money for social care and public health, which covers everything from stop smoking services to obesity prevention.
Both are considered essential to the sustainability of the NHS, but the increase announced only applied to front-line NHS services such as hospitals, GPs and mental health care.Both are considered essential to the sustainability of the NHS, but the increase announced only applied to front-line NHS services such as hospitals, GPs and mental health care.
Councillor Izzi Seecombe, of the Local Government Association, said: "Without essential council services, which help people live healthy lives in their own homes and communities, the NHS cannot thrive." Councillor Izzi Seccombe, of the Local Government Association, said: "Without essential council services, which help people live healthy lives in their own homes and communities, the NHS cannot thrive."
The announcement for England means the rest of the UK will also be given extra money, although it is up to the governments in Wales and Scotland to decide exactly how that is spent.The announcement for England means the rest of the UK will also be given extra money, although it is up to the governments in Wales and Scotland to decide exactly how that is spent.