20.09.12
£8bn cuts possible for NHS after election – IPPR
The NHS could face cuts of nearly £8bn following the next general election, the Institute for Public Policy Research (IPPR) suggests.
A new report from the IPPR sets out Government’s options for the next round of spending reductions, and states that unless the pledge to increase NHS spending by more than inflation every year is extended after the election, the budget could be cut by £7.8bn in 2016-17.
Prime Minister David Cameron made the pledge for this Parliament, but it might not be extended beyond the election, as the Government attempts to clear the structural deficit.
According to the IPPR, the Government’s fiscal targets imply real term cuts of 3.8% in 2015/16 and 2016/17.
Spending for the NHS must be balanced with the budgets for education, defence, welfare, local government and the Home Office, which the IPPR admits will lead to difficult decisions.
Nick Pearce, the IPPR’s director, said: “There are no easy options for politicians in the next spending review because of the weakness of the economy and the fragility of the nation's public finances.
“The economy needs stimulus for growth now, but fiscal consolidation in the next parliament. That makes some combination of spending cuts and tax rises inevitable. Realistic and credible fiscal plans will have to go beyond small or symbolic measures that do not match the scale of the task.”
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