View all newsletters
Sign up to our newsletters

Support 110 years of independent journalism.

  1. Business
  2. Economics
8 June 2010

Will the Tories drop their pledge to protect NHS spending?

Figures from left and right urge Conservatives to abandon costly pledge to ring-fence NHS spending.

By George Eaton

At this morning’s cabinet meeting, George Osborne cited figures from the Institute for Fiscal Studies suggesting that spending in non-ring-fenced departments could fall by 15 to 20 per cent. Unfortunately for Osborne, that forecast is out of date.

More recently, the IFS has suggested that spending in unprotected areas will need to fall by 25 per cent for the Tories to meet their deficit reduction targets.

In light of this, David Cameron is under growing pressure to abandon his pledge to ring-fence spending on the NHS and on international development.

Earlier this lunchtime, Nigel Lawson, who remains an influential figure on the Conservative right, told The World at One that “nothing should be ring-fenced. Everything should be judged on its merit.”

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

The economist and Labour peer Meghnad Desai has also called on the Tories to break their pre-election pledge to protect spending on the National Health Service.

“Anything said before the election is off. Health is overextended,” Desai said. “We can get something out of the NHS.”

Nick Clegg, of course, distinguished himself during the election campaign by refusing to ring-fence spending in any area. Here’s what he told the BBC back in March:

We’re not entering into this Dutch auction about ring-fencing. Good outcomes aren’t determined by drawing a red line around government departmental budgets.

The Tories’ pledge on the NHS had everything to do with political positioning and nothing to do with economics. Clegg was right to call them out on it.

Intriguingly, the final coalition agreement rather ambiguously stated:

We will guarantee that health spending increases in real terms in each year of the parliament, while recognising the impact this decision will have on other departments.

The impact that it will have on other vital areas (most significantly, education) means that this commitment is unsustainable. Will Clegg now have the confidence to put this argument to Cameron?

Special subscription offer: Get 12 issues for £12 plus a free copy of Andy Beckett’s “When the Lights Went Out”.

Content from our partners
The promise of prevention
How Labour hopes to make the UK a leader in green energy
Is now the time to rethink health and care for older people? With Age UK

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU