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2010 Spending Review

  • Last modified date:
    20 October 2010
Nurses in a corridor

The Government has announced details of the Spending Review 2010 for the period between 2011-12 to 2014-15.

In line with the Government's commitment to protect health, the overall NHS budget will increase. In addition there is a clear commitment to support social care.

 For health, the overall budget will increase by 0.4% in real terms. This includes:

  • a 1.3% increase in the resource budget;
  • a 17% decrease in capital spending
  • a reduction in the administration budget of 33%
  • reinvestment to support the delivery of NHS services

'We have had to make difficult decisions about where this money is spent and we have to make every penny count.'
Andrew Lansley

Social care will receive additional investment, rising to £2 billion per year by 2014-15, through the NHS and local government.

To meet the rising costs of healthcare and increasing demand on its services, the NHS will release up to £20 billion of annual efficiency savings over the next four years, all of which will be reinvested to meet rising levels of demand and to support improvements in quality and outcomes. This will include, for example:

  • continuously improving workforce productivity;
  • applying best practice throughout the NHS in the management of long term conditions;
  • driving down inconsistencies in admissions and outpatient appointments;
  • and a 33% cut in the administration budget, including a reduction in the number of arm’s length bodies from 18 to a maximum of 10 by 2014.

'The Spending Review reinforces our historic commitment to protect health spending and means that funding for the NHS will increase in real terms in every year of this Parliament' said Health Secretary Andrew Lansley. 'Due to the deficit and the increasing demands on NHS and care services we have had to make difficult decisions about where this money is spent and we have to make every penny count.'

 'That is why we have chosen to invest in supporting social care and reablement – honouring our commitment to protect the most vulnerable in our society. And ultimately a better integrated health and care system will mean a more efficient system that delivers savings in the longer term – as more people live independently and are discharged from hospitals sooner.

'NHS organisations have already started a wide-ranging efficiency drive to make savings that can be redirected into patient care. And we also want to see a 33 per cent real terms cut in the administration budget, saving around £1.9 billion. But that is not enough. The NHS budget will have to stretch further than ever before in these difficult times – and so reform isn't an option, it's a necessity in order to sustain and improve our NHS. The proposals I set out this summer will cut waste and bureaucracy and put patients and doctors in control to build a high quality health service.'

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