19 April 2002
Stuart Marples, the Institute of Healthcare Management chief executive, said the rises were 'exceptional'. He said: 'It would be churlish not to acknowledge the extent of the increases.'
But he added that much of the extra cash was already committed to targets, such as reducing waiting times and junior doctors' hours.
The increases should enable the NHS to look after more patients, but it would take time to train the extra staff needed, he said.
In his Budget on April 17, Gordon Brown announced there would be an extra £1bn for the NHS in the current financial year, raising total spending to £65.4bn, and committed his government to an average real-terms increase of 7.4% for each of the next five years.
Total NHS spending will rise to £72.1bn in 2003/04, £79.3bn in 2004/05, £87.2bn in 2005/06, £95.9bn in 2006/07 and £105.6bn in 2007/08.
This will take NHS spending as a proportion of national income to 9.4% by 2007/08, compared with the current 7.7%.
The figures broadly match increases proposed by former NatWest Bank chief executive Derek Wanless in his final report on future NHS funding, which was published earlier in the day. Wanless said rises over the subsequent 15 years should be less marked, although spending should increase to between £154bn and £184bn by 2022/23.
The chancellor insisted the NHS must prove it is spending the money wisely. He said a new, statutory independent auditor would report annually to Parliament on the link between spending and outcomes. It will also produce local reports.
Health Secretary Alan Milburn was due to announce financial incentives for hospitals to improve performance and greater freedom for the best performing trusts.
The NHS Confederation called for a 'reality check' of what could be achieved.
Chief executive Dr Gill Morgan said: 'New investment will only make a difference if it is spent on both modernisation and catching up on the backlog created by under-investment in the NHS over 50 years.'
PFapr2002
