The NHS is set to receive a historic £29 billion real-terms funding boost to deliver the Government’s Plans for Change. Chancellor Rachel Reeves unveiled the investment during the recent Spending Review, claiming that ‘there’s no strong economy without a strong NHS.’ The boost is intended to future-proof the health service by tackling long waiting lists and modernising healthcare.
‘Despite the tough economic climate, the government has prioritised health services by continuing to increase spending on the NHS for the rest of this parliament,’ said Sarah Woolnough, Chief Executive of The King’s Fund. ‘A 2.8% average increase in total health department spending – 3% for day-to-day NHS spending – will have been hard-fought for in the spending round negotiations, despite still being lower than the historical average the NHS has received over recent years. A key challenge now will be for NHS to decide how it can deliver most value from the money that has been allocated.’
- Health leaders debate pay review body recommendations
- Health leaders respond to spring statement despite Chancellor's claims of public being ‘£500 better off’
- Chancellor announces £22.6 billion funding boost to the NHS
Health leaders welcomed the investment but warned it may still fall short of the radical transformation the system needs. The investment package includes up to £10 billion earmarked for technology and digital transformation, alongside expanded GP training schemes and the rollout of mental health support across every school. The announcement, hailed by some as a long-overdue commitment to public health, comes as the NHS faces mounting pressure from rising patient demand, an ageing population and workforce shortages.
‘Health leaders recognise that the NHS is being prioritised for investment over other parts of the public sector,’ said Matthew Taylor, Chief Executive of the NHS Confederation. ‘But difficult decisions will still need to be made as this additional £29 billion won’t be enough to cover the increasing cost of new treatments, with staff pay likely to account for a large proportion of it. So on its own, this won’t guarantee that waiting time targets are met.’
Frontline voices have cautioned that the investment must be matched by urgent action on the workforce crisis, particularly within nursing. Reeves' plan includes expanding training routes for GPs to deliver more appointments per year in an effort to reduce long-term strain on the service. However, health organisations such as the Royal College of Nursing (RCN) have claimed that achieving the desired reforms to the NHS would require a solution for the current workforce burnout.
‘The Chancellor acknowledged the contribution of nursing staff, but the reality is patient demand is rising and the nurse workforce crisis is deepening,’ said Professor Nicola Ranger, General Secretary and Chief Executive of the RCN. ‘Ambition and the funding to match is required from government if its flagship reforms are to be successful. Shifting care from hospitals into the community will require significant investment to not just stabilise the profession but grow nursing roles. When the government lays out its vision for the future of the NHS and its workforce, it must say how it intends to reverse collapsing student recruitment, boost retention and deliver urgent, structural reform to nursing pay.’