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NHS IT system to be scaled back NHS IT system to be scaled back
(39 minutes later)
The government is to scale back its £12bn NHS IT system in what the Tories are calling a "massive U-turn".The government is to scale back its £12bn NHS IT system in what the Tories are calling a "massive U-turn".
Chancellor Alistair Darling said he would be halting parts of the scheme in Wednesday's pre-Budget Report as it was "not essential to the frontline".Chancellor Alistair Darling said he would be halting parts of the scheme in Wednesday's pre-Budget Report as it was "not essential to the frontline".
The move could save hundreds of millions but Mr Darling admitted it was only a small part of the cuts needed.The move could save hundreds of millions but Mr Darling admitted it was only a small part of the cuts needed.
The Tories and Lib Dems have been calling for the IT system, which has been hit by costly delays, to be axed.The Tories and Lib Dems have been calling for the IT system, which has been hit by costly delays, to be axed.
Speaking on BBC One's Andrew Marr show, Mr Darling said he was determined to halve Britain's budget deficit over the next four years and as a result public spending would be "a lot tighter than it was in the past" . Speaking on BBC One's Andrew Marr show, Mr Darling said he was determined to halve Britain's budget deficit over the next four years and as a result public spending would be "a lot tighter than it was in the past".
He stressed that the pre-Budget report was not a spending review, but added: "I do think it is necessary for me on Wednesday to indicate you know areas where we are going to cut spending or where we're not going to spend as much as we were.He stressed that the pre-Budget report was not a spending review, but added: "I do think it is necessary for me on Wednesday to indicate you know areas where we are going to cut spending or where we're not going to spend as much as we were.
This is another government IT procurement disaster, it just shows you can't trust Labour on spending efficiency Andrew Lansley, shadow health secretaryThis is another government IT procurement disaster, it just shows you can't trust Labour on spending efficiency Andrew Lansley, shadow health secretary
"You know, for example, the NHS had a quite expensive IT system that you know, frankly, isn't essential to the frontline."You know, for example, the NHS had a quite expensive IT system that you know, frankly, isn't essential to the frontline.
"It's something that I think we don't need to go ahead with just now.""It's something that I think we don't need to go ahead with just now."
He conceded it was just "an example" of the sort of spending cuts that would be needed and he said he would be giving more detail on Wednesday although the full picture would not emerge until "the first half of next year at some point" - a reference to the comprehensive spending review, which the government has delayed until after an election.He conceded it was just "an example" of the sort of spending cuts that would be needed and he said he would be giving more detail on Wednesday although the full picture would not emerge until "the first half of next year at some point" - a reference to the comprehensive spending review, which the government has delayed until after an election.
'Procurement disaster''Procurement disaster'
Treasury officials have stressed that only part of the NHS IT programme are facing the axe, and the whole project will not be scrapped.Treasury officials have stressed that only part of the NHS IT programme are facing the axe, and the whole project will not be scrapped.
A Treasury spokesman said: "The Secretary of State for Health is going to set out the details later this week."A Treasury spokesman said: "The Secretary of State for Health is going to set out the details later this week."
WHAT IS THE IT PROGRAMME? The vision is for patients' records to be electronically available to any GP or hospital in England, thereby replacing local NHS computer systemsOther services include electronic prescriptions, an e-mail and directory service for all NHS staff, computer accessible X-rays and a facility for patients to book outpatient appointments onlineIt is the largest single IT investment in UK - costs are expected to hit £12.4bn over 10 years to 2013-14WHAT IS THE IT PROGRAMME? The vision is for patients' records to be electronically available to any GP or hospital in England, thereby replacing local NHS computer systemsOther services include electronic prescriptions, an e-mail and directory service for all NHS staff, computer accessible X-rays and a facility for patients to book outpatient appointments onlineIt is the largest single IT investment in UK - costs are expected to hit £12.4bn over 10 years to 2013-14
But the Conservatives, who have long called for it to be abolished said Mr Darling's words represented a "massive U-turn".But the Conservatives, who have long called for it to be abolished said Mr Darling's words represented a "massive U-turn".
Shadow Health Secretary Andrew Lansley said: "After seven years Labour have finally acknowledged what we've said for years, that the procurement for NHS IT was costing billions and not delivering. The opportunity cost to the NHS also measures billions of pounds.Shadow Health Secretary Andrew Lansley said: "After seven years Labour have finally acknowledged what we've said for years, that the procurement for NHS IT was costing billions and not delivering. The opportunity cost to the NHS also measures billions of pounds.
"This is another government IT procurement disaster, it just shows you can't trust Labour on spending efficiency.""This is another government IT procurement disaster, it just shows you can't trust Labour on spending efficiency."
The electronic patient record system, which is thought to have cost about £12bn so far, was commissioned in 2002 by then prime minister Tony Blair, and was meant to be completed by 2010.The electronic patient record system, which is thought to have cost about £12bn so far, was commissioned in 2002 by then prime minister Tony Blair, and was meant to be completed by 2010.
It was supposed to computerise medical records in a central database and link up more than 30,000 GPs to nearly 300 hospitals. It was supposed to computerise medical records in a central database and link up more than 30,000 GPs to nearly 300 hospitals, provide an online booking system, a centralised medical records system, e-prescriptions and fast computer network links between NHS organisations.
'Wasted years' 'Open source'
It was also meant to provide an online booking system, a centralised medical records system, e-prescriptions and fast computer network links between NHS organisations.
Mr Lansley told BBC One's Politics Show that Labour had "wasted years" and billions of pounds on the scheme.Mr Lansley told BBC One's Politics Show that Labour had "wasted years" and billions of pounds on the scheme.
He said the Tories would scrap the centralised IT system and then given hospitals "the opportunity to buy IT systems, as long as they talk to one another". He said the Tories would scrap the "enormous centralised IT system" and instead give hospitals "the opportunity to buy IT systems" that could "talk to one another" so that they could transfer images, patient records and prescriptions electronically.
He said the doctors needed to be able to transfer images, patient records and prescriptions electronically but it was not necessary to have an "enormous centralised IT system".
Mr Lansley has said he wants hospitals to use commercially available "open source" software and even send patient records over the internet, which he insists would be secure.Mr Lansley has said he wants hospitals to use commercially available "open source" software and even send patient records over the internet, which he insists would be secure.
He said it was not clear how much of the £3bn or £4bn still to be spent on the centralised NHS IT system could be saved by halting it now, as the Conservatives had not been given access to the contracts. He said it was not clear how much of the £3bn or £4bn still to be spent on the centralised NHS IT system could be saved by halting it now, as the Conservatives had not been given access to the contracts, but he said he hoped the savings could be used to enable hospitals to "buy the IT they need".
But he added: "I hope it would be possible to save spending most of that centrally and to be able to enable hospitals and doctors locally to buy the IT they need". It comes as the Conservatives called for a moratorium on all government computer projects, ahead of the publication of the government's five-year IT strategy later this week.
It comes as the Conservatives call for a moratorium on all government computer projects, ahead of the publication of the government's five-year IT strategy. The Liberal Democrats reacted to Mr Darling's announcement by calling for the new NHS IT system to be "abandoned in its entirety subject to existing contractual obligations" and a new system built from the "bottom up".
The party, which published a leaded draft of the government strategy last week, has written to the Cabinet Secretary calling for no new contracts to be renewed or signed ahead of a general election, which must happen by June next year. The party's health spokesman Norman Lamb said: "This whole programme has been disastrously flawed from the start.
Shadow cabinet office minster Francis Maude said: "It would be outrageously irresponsible in the dying months of this failed government, at this time of deep financial crisis, to commit ever more public money to an IT programme already marked by failure and waste." "It has held back the development of IT at a local level, cost billions and is running years behind schedule.
"Labour have been in denial for years and this is a belated and partial recognition of the scale of their failure."