Future Funding And NHS Priorities Set Out

NHS Primary Care Trusts (PCTs) are to receive £164 billion funding for 2009/10 and 2010/11, Health Secretary Alan Johnson has announced.

This includes an average increase of 5.5% over both years, continuing Government investment that has seen funding in the NHS treble since 1997.

Strong financial management across the NHS has brought the service out of deficit and onto a firm financial footing. The NHS is well placed to meet the challenges of the tougher economic climate ahead.

The announcement will see funding rise to an average of £1,612 per person by 2010/11 compared to £426 in 1996/97. PCTs will control a greater proportion of funding, with more than 80% of the total NHS budget now allocated directly, allowing them to tailor health services locally to meet local patient needs. Following an independent review by the Advisory Committee on Resource Allocation the allocations are based on a new, more technically robust formula. A separate formula for health inequalities has also been developed which targets areas with the worst health outcomes.

The NHS Operating Framework for 2009/10, setting out NHS priorities for the next year is also published this week. The Operating Framework will help deliver Lord Darzi's vision of an NHS that has quality at the heart of everything it does, as set out in his report High Quality Care for All. The Framework will allow the NHS to focus on ensuring care is safe, compassionate and personal to patients. It will also enable the NHS to deliver the efficiency savings that will be necessary over the coming years by providing better care for better value. For example, it is estimated that reducing healthcare associated infections has improved the experience of thousands of patients and saved the NHS £75 million in the last year.

Health Secretary Alan Johnson said: "In its 60th year the NHS is in good shape and treating more patients than ever. The NHS has benefited from successive generous spending settlements, investment has trebled since 1997. This has funded the record increases in staff, hospitals and medical advances we have seen in recent years.

"We will sustain our investment in the health service over the next two years as the NHS continues to deliver significant improvements against key priorities including better access to primary care, the shortest ever waiting times and a relentless drive to tackle healthcare associated infections."

(JM)