The Staggers

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Cameron breaks his NHS spending pledge

Spending on the health service was cut by £766m last year.

By George Eaton Published 29 July 2011 15:23

Earlier this week, I revealed that David Cameron had betrayed his pledge to protect Sure Start, now he's broken another key election promise.

The PM has repeatedly said that spending on the health service will rise in "real terms" in each year of this Parliament. But figures from the Treasury (see Table 1.9) show that the NHS spent £101,985m from April 2010 to April 2011, down from £102,751m the previous year, and a real-terms cut of £766m.

George Osborne's ostensible defence is that the year in question - 2010-11 - was the final year of Labour's 2007 spending review. But as Ed Balls has just pointed out in a letter to the Chancellor, "[U]nder our plans NHS spending was to be £106.6 billion in 2010-11 ... You have actually spent just £102.0 billion."

In fairness, the coalition is on track to meet its pledge this year (see Table 1.9) with spending set to rise in real-terms from £101,985m to £103,026m. However, spending will then fall back to £102,861m the following year (2012-13). David Cameron is fond of boasting that the NHS budget will rise in cash terms by £12.5bn but what he forgets is that much of this increase be swallowed up by inflation. The purchasing power of the NHS will be progressively reduced as the price of drugs and equipment continues to rise.

The real question now is whether the coalition will abandon its pledge or instead raise extra funding for the NHS, either through tax rises or through even greater cuts elsewhere.

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Tags: NHS

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30 comments

Sat, 2011-07-30 14:30 — Mr Danger

"Danger Shite, Alistair Darling raised the top rate of tax."

Why did the Tories keep it? It had only been in place for a month. I thought they wanted to give money to the wealthy?

Fri, 2011-07-29 16:42 — Mr Danger

"it took Thatcher longer than this to decimate services, Cameron's only been in around fourteen months."

The NHS has been "decimated" because, for one year, spending fell 0.7% in real terms, even though it grew again the following year?

Why, because so much of the NHS budget is spent on food (food prices have been a big inflation driver this year)?

Someone needs their hysteria gland operated on.

Fri, 2011-07-29 16:46 — Lou (not verified)

Someone needs a slightly better defence and argument than that to justify the decimation in services.

Fri, 2011-07-29 16:52 — BruceL (not verified)

If Thatcher was "The Decimator", is Cameron "The Decimator 2"? Let's hope not because otherwise "I'll be back" takes on a new and even more sinister edge!

Fri, 2011-07-29 16:54 — mcquade

Danger Shite, do tell us it was due to the unseasonal weather.

Fri, 2011-07-29 18:25 — matthew fox (not verified)

With the NHS rationing medical services, and waiting lists raising, Mrs T must be proud of Cameron's handy work.

In 1997 1 million people where waiting 13 weeks or more for an operation.

I love the Right re-writing the past.

Fri, 2011-07-29 18:27 — matthew fox (not verified)

@Mcquade

Mr Danger is blaming Neil Diamond performing at the o2.

Sat, 2011-07-30 16:46 — Fergus Pickering (not verified)

What is a Tory stooge? Do Lbour have stooges or only Tories? What is the story here? That NHS spending is going down? But NHS spending is going up? I am a Tory. Therefore I hate the NHS. But I don't. The bits I've been exposed to seem all right. Perhaps there are some other bits where improvements could be made? Do you think that might be so? But the NHS mustalways be4 free at the point of use. But it isn't. I pay for prescriptions and I pay for dental work and I pay for glasses. Are these not part of the Health service? Or is it that anything you pay for is BY DEFINITION not part of the Health Service. Isn't this a boring and trivial piece of non news. Did you know that, since the Tories started meddling with the NHS, PEOPLE HAVE DIED? Under Labour no-one ever died.

Fri, 2011-07-29 18:49 — Mr Danger

Matthew, mcquade: the ONS came up with the justifications, not the Coalition.

"With the NHS rationing medical services"

I love this. So until now there was a "help yourself, unlimited supply" policy, and now that the nasty coalition is in power, they INVENTED the concept of rationing in the NHS!

Who knew!

Tracked down any evidence of decimation by a 0.7% cut (undone one year later) yet?

Fri, 2011-07-29 19:02 — matthew fox (not verified)

From your comments Mr Danger, you love being wrong.

Until now there was a policy of
" Money where your mouth is "

Conservatives hate the thought of properly funded healthcare, they prefer giving money to the wealthy.

Fri, 2011-07-29 19:18 — Mr Danger

They hate the thought of properly funded healthcare, so they increase funding for it. Yeah that makes sense.

Top tax rate raised to 50% and child benefit cut for high rate payers. That's known as 'giving money to the wealthy'.

I wish I were left - I'd never have to think.

Fri, 2011-07-29 19:47 — Livers (not verified)

'I'll cut the deficit not the NHS' was a remarkable poster and great PR during the election campaign.

@Mr Danger -- is this true? Is the borrowing requirement coming down? Is NHS spending increasing?

Of course not. Like most of the shit Cameron spouted before the election we are now finding it was hollow rhetoric to get a vote.

Cue: Tory stooge to bang on about Labour's record and avoid facing the central point raised in this article.

Fri, 2011-07-29 19:55 — Mr Danger

"Is NHS spending increasing?"

Read the article above. The answer is yes.

Fri, 2011-07-29 20:30 — Livers (not verified)

You forgot the 'in cash terms', which of course is the Tory way of saying we don't understand percentages and GDP and inflation. That's all economic voodoo.

They are happy to chip away at that 'maxed out credit card bill' paying a bit more each month, thinking all is well, completely oblivious to the massive hike in the APR.

Fri, 2011-07-29 22:55 — sally (not verified)

Tories hate, and want to destroy anything they or their corporate masters can't own.

Cameron lied about the NHS from the moment he hid behind is sick child and said he supported the NHS. If you love the NHS you don't put Lansley as health Minister and ram through a mass privatistion plan that was not in your manifesto. You don't then send one of your team to the USA to boast about how much money American corporates can cash in on by the impending sell off.

Sun, 2011-07-31 11:41 — Luddite (not verified)

Labour borrowed on a humongous scale to finance the illusion of prosperity. Many of our gleaming new Schools and hospitals paid for out of the public purse, aren't even owned by the public, but rented back to us. Labour made to many monumental mistakes to be easily forgiven. I for one prefer hard faced realists running our finances, not well meaning amateurs.

Sat, 2011-07-30 01:59 — Nostrovia (not verified)

Sally, how nice of you to bring up Cameron's deceased son.

What are the facts?
Is health funding set to increase or decrease? If it is, according to this article, set to increase, can someone explain what the issue is?

Or are you just talking smack?

I'll leave you with another fact:
Between 97-10 Labour spent £65 billion on hospital public works.

Unfortunately, they only paid for £5billion.

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Sat, 2011-07-30 03:51 — Harry (not verified)

Whilst there is this debate over the increase/decrease to the NHS budget in cash terms many of the PCTs are facing a substantial cut in funding (around 4% I've seen quoted) due to a combination of high inflation and the billions being spent on the NHS reforms. This is one reason for the rationing of operations such as for cateracts, however the other reason for these operation rationings has been to reduce the waiting times. By redrafting the criteria for being eligable for operations they can keep waiting times down (and by they I mean the individual PCT's who are pressured from the gov).

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Sat, 2011-07-30 10:25 — mcquade

"The ONS came up with the justifications, not the Coalition."

Danger, Osborne's lapdogs Nick Boles and Matthes Hancock had been trailing those excuses in every broadcast studio for weeks prior to the announcement, priming the public for disappointment.

Sat, 2011-07-30 10:27 — Mizar (not verified)

We should all be afraid. The Tories will destroy services we really need. This is not politics ... this is about life and death.

Sat, 2011-07-30 10:30 — mcquade

"Top tax rate raised to 50%"

Danger Shite, Alistair Darling raised the top rate of tax.

Sat, 2011-07-30 10:32 — mcquade

""Is NHS spending increasing?"

Read the article above. The answer is yes."

And Danger Shite, the article above says that spending so far is on track for the current year. But considering we're only 3 months into that, anything could happen. Don't crow over your eggs before they've hatched.

Sat, 2011-07-30 10:36 — mcquade

"I'll leave you with another fact:
Between 97-10 Labour spent £65 billion on hospital public works.
Unfortunately, they only paid for £5billion."

And Nostrovia, I'll leave you with another fact. Osborne is continuing with the same policy and has ramped it up.

Fri, 2011-07-29 15:32 — Lou (not verified)

Not looking good on top of the announcements on the sidelines of a variety of procedures like cataracts and hip operations, waiting lists being played with meaning some people resort to private treatment or have died in the interim.

What was that about the NHS being safe in their hands? It took Thatcher longer than this to decimate services, Cameron's only been in around fourteen months.

Fri, 2011-07-29 15:33 — Lou (not verified)

sidelining not sidelines

Fri, 2011-07-29 15:35 — Mizar (not verified)

Lies tumble out of his mouth. But the truth is that Tories hate the NHS, and want to see it ended. The brand is the only thing what will remain.