20.09.12
NHS underspend nearly £4bn – Audit Commission
NHS organisations are significantly under-spending, leading to a pool of ‘uncommitted finances’ totalling nearly £4bn, a new report from the Audit Commission shows.
The 2011/12 audit of NHS financial accounts found that NHS trusts alone reported a combined underspend and surplus of £1.6bn. Foundation trusts under-spent by a further £400m, and PCTs saved £1.5bn.
Andy McKeon, the commission's managing director of health, said: “Overall, a combination of under-spend, surpluses and non-recurrent spending in 2011-12 have given the NHS approaching £4bn in uncommitted finances, providing financial room for manoeuvre in the future.”
Christina McAnea, head of health at Unison, said: “It is a tragedy that £4bn is sitting in the bank when struggling hospitals are rationing patient care, closing wards, and nurses are losing their jobs.”
But the report stated that: “Overall, the savings programmes have had no material affect on the numbers of front-line staff, although the number of managerial and administrative staff has fallen significantly.”
The NHS has succeeded in saving the first £5.8bn of efficiencies from the £20bn target over the next four years, the report added.
But whilst most trusts improved their financial position, the number in deficit increased from 13 in 2010/11 to 31 in 2011/12, and there are major regional differences in terms of surplus and deficit reported.
Additionally, the Audit Commission found that there was little sign of services moving out of hospitals into the community – action which many suggest it vital for further savings to be created.
A spokesman for the Department of Health said: “It is better to plan for a surplus because it gives the NHS the flexibility to respond to the unexpected, whilst allowing enough money for investment in new services.”
NHS Confederation chief executive Mike Farrar called for commissioners to boldly invest to create a sustainable NHS. He said: “Now is the time for big investment in community and primary care. We need to do this to ensure hospitals can sustain local services in the long run.
“Short term fixes for struggling trusts are no longer possible. NHS organisations cannot afford to stand still. Unless we take action the pressures will overcome us.”
The report is at: www.audit-commission.gov.uk/SiteCollectionDocuments/Downloads/NHS-financial-year-11-12.pdf
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