Wes Streeting, the incoming Secretary of State for Health and Social Care in the UK, has declared that the NHS “is broken”.
In 2022, nine of the EU14 countries outpaced the UK in publicly funded healthcare spending per person, with Germany leading the charge with 55% higher spending. The Netherlands, Austria, France, and Sweden also recorded health spending that was more than 20% higher than in the UK. Can the UK catch up, or will its citizens continue to bear the brunt of chronic underfunding?
In recent years, public health spending in the UK has faced significant challenges. Government healthcare expenditure decreased by 5.5% in real terms between 2021 and 2022, attributed to reduced spending on preventive care, following a spike due to the pandemic response. Health spending plans for 2024-25 in England imply a 2.4% real-terms cut compared with 2023-24, according to the Institute for Fiscal Studies (IFS). That would amount to the largest reduction since the 1970s, excluding the last two years of temporary funding during the Covid-19 pandemic.
The Health Foundation said last month that the UK’s healthcare system will require an additional £38bn per year by 2029-30 to meet rising demands and improve standards. This represents a 17.4% increase in spending per head compared with 2024-25. Without this boost, it is claimed that the NHS may struggle to maintain, let alone improve, the quality of care.
It is strategic investment in key areas that is emerging as the urgent prescription. “The most immediate priority is capital expenditure, building new health facilities, fixing those that are deteriorating, and investing in equipment and training,” stressed Martin McKee, research director of the European Observatory on Health Systems and Policies. Dr Dean Eggitt, a GP based in Doncaster, called for increased funding in primary care, emphasising enhancements to GP services and the critical role in early disease management. He also backed the idea that reliance on NHS services could be reduced by focusing on patient education and empowerment, enabling more people to take charge of their health.
Recent research underscores the economic benefits of targeted NHS funding. Investing in community and primary care services promises a remarkable £14 return in economic growth for every £1 spent, while acute care investment shows a substantial £10 economic return for every £1.
This week, the new government has taken some initial steps towards its pledge to restore the health of the NHS by appointing surgeon and former health minister Professor Lord Darzi to conduct a “raw and honest” diagnosis of the health service. And in a move aimed at boosting the UK’s output to pay for improvements, Streeting signalled his intention to help people back into the workplace by cutting hospital waiting times and harnessing the UK’s life sciences sector to deliver economic growth.
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