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Spending Review: NHS gets small funding rise Spending Review: NHS gets small funding rise
(40 minutes later)
By Nick Triggle Health reporter, BBC NewsBy Nick Triggle Health reporter, BBC News
The NHS budget in England is to rise by £10bn this parliament - the equivalent of a 0.1% above inflation rise each year. It will mean funding increasing from £104bn this year to £114bn by 2014-15. The NHS budget in England is to rise by £10bn this parliament - the equivalent of a 0.1% above inflation rise each year.
It will mean funding increasing from £104bn this year to £114bn by 2014-15.
Historically, health spending has gone up by over 4% in real terms, prompting unions to say the rise actually feels like a cut and could damage services.Historically, health spending has gone up by over 4% in real terms, prompting unions to say the rise actually feels like a cut and could damage services.
This is because the ageing population, obesity and the cost of new drugs mean an extra 3% is needed to stand still.This is because the ageing population, obesity and the cost of new drugs mean an extra 3% is needed to stand still.
SavingsSavings
In preparation, the NHS has already been asked to find efficiency savings.In preparation, the NHS has already been asked to find efficiency savings.
The previous government set a figure of between £15bn and £20bn by 2014 - which means finding nearly 5% of savings a year.The previous government set a figure of between £15bn and £20bn by 2014 - which means finding nearly 5% of savings a year.
This target has been kept in place by the coalition despite the increase in the budget.This target has been kept in place by the coalition despite the increase in the budget.
Chancellor George Osborne said: "The NHS is an intrinsic part of the fabric of our country. It is the embodiment of a fair society.Chancellor George Osborne said: "The NHS is an intrinsic part of the fabric of our country. It is the embodiment of a fair society.
"To govern is to choose. And we have chosen the NHS. That does not mean we are letting the health department off the need to drive forward real reform and savings from waste and inefficiency.""To govern is to choose. And we have chosen the NHS. That does not mean we are letting the health department off the need to drive forward real reform and savings from waste and inefficiency."
He also said the cancer drug fund, promised before the election, would be created although it was unclear whether the pot would be as much as £200m as expected.He also said the cancer drug fund, promised before the election, would be created although it was unclear whether the pot would be as much as £200m as expected.
Meanwhile, spending on health research would be protected along with some of the new hospital projects in the pipeline.Meanwhile, spending on health research would be protected along with some of the new hospital projects in the pipeline.
The NHS has also been told to offer more support to social care with £1bn being earmarked for services which overlap the two sectors, such as rehabilitation for patients discharged from hospital.The NHS has also been told to offer more support to social care with £1bn being earmarked for services which overlap the two sectors, such as rehabilitation for patients discharged from hospital.
Unison general secretary Dave Prentis said the small rise was a "facade".Unison general secretary Dave Prentis said the small rise was a "facade".
"The NHS is not safe. Some hospitals are already cutting back on vital life-improving operations such as cataract, hip and knee replacements."The NHS is not safe. Some hospitals are already cutting back on vital life-improving operations such as cataract, hip and knee replacements.
"The NHS needs extra funding just to stand still. It will not be able to keep up.""The NHS needs extra funding just to stand still. It will not be able to keep up."
He also reiterated his criticisms of government reforms, which will see GPs take control of the budget and primary care trusts abolished.He also reiterated his criticisms of government reforms, which will see GPs take control of the budget and primary care trusts abolished.
He said they would "create havoc and instability just when the NHS can least afford it".He said they would "create havoc and instability just when the NHS can least afford it".
The rest of the UK will not make a final decision on health spending until later this year. All have promised to offer some protection to the NHS, although not in such a categorical manner as ministers in England did.The rest of the UK will not make a final decision on health spending until later this year. All have promised to offer some protection to the NHS, although not in such a categorical manner as ministers in England did.