11 February 2005
Health Secretary John Reid put his commitment to improving public health into action this week by diverting more NHS cash into the most deprived areas of England.
Reid highlighted 'fairness' as one of the guiding principles behind the allocation of funds to primary care trusts in 2006/07 and 2007/08.
In the wake of November's public health white paper, Reid targeted 88 PCTs with the greatest health inequalities. These areas will receive higher than average funding from 2006.
They include deprived communities in London, Merseyside and Tyneside. By 2007/08, Islington PCT will receive funding of £1,956 per head of population and North Liverpool £1,818. The national average will be £1,388 per head, although some areas, particularly rural ones, will receive £1,100 per head. Three years ago, the average was £907.
Every PCT will receive at least an 8% cash increase in each of the two years. Despite spending a total of £64bn in 2006/07 and £70bn in 2007/08, some PCTs will face financial difficulties.
The NHS Confederation said: 'NHS spending is now greater than ever before but there are many new demands on this money and increased expectations for further improvements accompanying this new investment. This may be a challenge for some organisations.'
Reid said: 'I am making sure that the most deprived areas, where there are appalling inequalities in life expectancy and concentrated problems of diseases, such as lung cancer or heart disease, receive extra investment.'
Liberal Democrat health spokesman Paul Burstow said the funding increase was welcome, but added that the government needed to do more to ensure that PCTs had the freedom to decide on priorities.
Conservative shadow health secretary Andrew Lansley dismissed Reid's proposals. 'There is actually no extra money, this has all been promised before,' he said. 'It is simply an announcement to divide the cake up differently.'
l NHS health boards in Scotland are to receive a 7.6% average increase in revenue spending, bringing their total allocation to £6bn, Scotland's Health Minister Andy Kerr announced.
He said the increased investment for 2005/06 would help the NHS in the drive to modernise services. It would provide improved patient care, increase standards of service and cut waiting times.
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