06.07.12
£3.4bn increased spending for frontline NHS
NHS savings on IT projects mean spending on frontline services has increased by £3.4bn in cash terms since last year, Treasury statistics show.
The NHS has achieved faster-than-expected savings of £1.5bn from ‘bureaucracy’ and £400m on IT projects, the Department of Health announced. In real terms, NHS spending has reduced slightly by 0.02%, PESA (public expenditure statistical analyses) figures show.
PCTs and SHAs have reported a £1.6bn surplus, which will now be made available in 2012/13, representing a 3% increase in funding relative to last year.
Health minister Simon Burns said: “This Government has met its promise to provide a real terms increase in the health budget.
“The amount spent on frontline services in 2011/12 increased by £3.4bn in cash terms or 3.5% compared to the previous year. While spending has increased on patients, we have reduced inefficient spending, saving over £1.5bn on bureaucracy and IT.
“This money has not been lost but is being carried forward for next year. Our increases in frontline spending are already showing results – waiting times have been kept low, there are more doctors, the NHS has performed more diagnostic tests and planned operations, and infections have been reduced even further.”
However, the NHS has been criticised recently after it emerged that struggling NHS trusts have received more than £1bn in bailout funds in six years. A NAO report revealed that the Department had to give emergency funds to four NHS foundation trusts and 17 NHS trusts between 2006 and 2012.
Last week South London Healthcare NHS Trust became the first in the country to go under the control of a special administrator after it ran up deficits of more than £150m over the past three years.
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