latest health care news

08.03.19

Capital investment in NHS being slashed to cover rising day-to-day costs, new report reveals

A short-term approach to NHS funding has led to “years of declining and inadequate” capital spending for the health service, according to a new report from the Health Foundation.

The charity has warned that an ageing infrastructure together with a substantial and growing repairs backlog was likely to undermine ambitions to transform the health service outlined in the NHS Long-Term Plan.

The Department of Health and Social Care (DHSC) uses its capital budget to fund long-term investments in the NHS such as new buildings, equipment, and IT, and also pays for maintenance and research.

But the Health Foundation’s report said the capital budget has declined in real terms over the past eight years, with NHS trusts experiencing a 21% reduction in their capital funding.

Large amounts of funding have been transferred from long-term capital investment to cover the day-today cost of running the NHS which is growing drastically due to rising demand.

This year alone, £500m of capital investment was cancelled or postponed.

The charity said the poor investment in the UK health service was putting patient care and staff productivity at risk.

Anita Charlesworth, director of research and economics at the Health Foundation, said: “Capital investment is not a nice-to-have failing to carry out repairs and invest in modern equipment and technology puts at risk the quality of patient care.

“It will also undermine the NHS’s ability to improve and transform care in line with the NHS Long-Term Plan.”

“Just bringing capital funding for the health service in England up to the OECD average would require around £3.5 billion extra next year, rising to £4.1billion by 2023/24.”

The analysis also revealed that the UK’s spending on capital investment in relation to its GDP equates to about half of the spending seen in similar countries.

Responding to the report, Nick Ville, director of policy at NHS Confederation, said: “This timely report highlights the worrying fall in capital investment in the NHS – we are spending less on capital than nearly all OECD countries.

“Hospitals badly need more capital spending to be able to offer patients the latest treatments, tackle a maintenance backlog and modernise outdated technology that wastes staff time. 

“Failure to tackle this will undermine the ability of the NHS to deliver high-quality patient care. It is essential that this is addressed in the spending review this autumn.”

 

Comments

There are no comments. Why not be the first?

Add your comment

 

national health executive tv

more videos >

featured articles

View all News

last word

Hard to be optimistic

Hard to be optimistic

Rachel Power, chief executive of the Patients Association, warns that we must be realistic about the very real effects of continued underfunding across the health service. It’s now beyond more > more last word articles >

health service focus

View all News

comment

Staying curious with the Shadow Board Programme

20/03/2019Staying curious with the Shadow Board Programme

Kirstie Stott, director of The Inspiring Leaders Network, discusses organis... more >
Fiction as Therapy

20/03/2019Fiction as Therapy

Elaine Bousfield of ZunTold Publishing – a press specialising in fict... more >

interviews

How can winter pressures be dealt with? Introduce a National Social Care Service, RCP president suggests

24/10/2018How can winter pressures be dealt with? Introduce a National Social Care Service, RCP president suggests

A dedicated national social care service could be a potential solution to s... more >

the scalpel's daily blog

Personal Health Budgets: empowering individuals

20/03/2019Personal Health Budgets: empowering individuals

Jon Baker, PHBChoices director at NHS Shared Business Services (NHS SBS) believes that the extension of Personal Health Budgets (PHBs) is a great opportunity for clinical comm... more >
read more blog posts from 'the scalpel' >

healthcare events

events calendar

back

March 2019

forward
mon tue wed thu fri sat sun
25 26 27 28 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
1 2 3 4 5 6 7

editor's comment

25/09/2017A hotbed of innovation

This edition of NHE comes hot on the heels of this year’s NHS Expo which, once again, proved to be a huge success at Manchester Central. A number of announcements were made during the event, with the health secretary naming the second wave of NHS digital pioneers, or ‘fast followers’, which follow the initial global digital exemplars who were revealed at the same show 12 months earlier.  Jeremy Hunt also stated that by the end of 2018 – the 70th birthday... read more >