04.07.12
Grim NHS spending forecasts mean free services may have to go
Some free NHS services may need to become paid-for or the public will have to have their taxes hiked to pay for them, according to a detailed investigation into future health and social care spending.
The Institute for Fiscal Studies and Nuffield Trust plots future spending scenarios for the NHS inEnglandand examines their consequences for other public service spending and for taxation.
Report co-author Carl Emmerson, deputy director of the IFS, said: “The current spending plans that run to March 2015 are tighter for the NHS than any delivered in the last fifty years, and the outlook for spending on public services beyond this suggests that, if it grows at all, NHS spending is not likely to keep pace with the amount that it has been estimated it needs to keep pace with the costs of an ageing population.
“Serious consideration should be given to the options for the NHS, which include reviewing the range of services available free at the point of use and reconsidering the level of taxation needed to finance them.”
Nuffield Trust chief economist Anita Charlesworth, who is leading the research programme seeking to assess the scale of the financial challenge facing the NHS over the next decade and how it can be met, said: “Asking the NHS to take a more equal share of the pain across the public services amounts to an unprecedented productivity challenge.”
NHS Confederation chief executive Mike Farrar said: “The figures from this report back our recent calls for Government and NHS leaders to urgently start the difficult yet necessary dialogue with the public about why the health service needs to change frontline care.
“We need to be honest about the action necessary to deal with a decade of spending squeezes and the rising cost of healthcare.”
He specifically suggested that the NHS workforce may need to fall to ensure the whole service is “fit for the future”.
Visit www.ifs.org.uk/publications/6229
Tell us what you think – have your say below, or email us directly at [email protected]