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NHS productivity falling according to NAO

New report reveals that NHS productivity has fallen by 1.4 per cent every year since 2000.

NHS productivity has fallen every year for the past decade, according to a report published today by the National Audit Office.

The report revealed that productivity dropped by 1.4 per cent each year from 2000. During this period, pay for GPs and nurses rocketed by up to 60 per cent, while the NHS budget as a whole ballooned from £60bn in 2000 to £102bn in 2010.

The report criticised the proposed coalition reforms of the NHS because managers would be "distracted from making savings", making planned efficiency savings of £20bn "more difficult" to achieve.

The health minister, Simon Burns, argued that the report vindicated the coalition's plans for reform, as it "shows why we cannot simply keep pouring money into an unreformed system."