Budget Shortfall in Healthcare: The Government Failed to Keep its Promises to Invest in the NHS

The Institute for Fiscal Studies has found that the government is spending £5.5bn less on health in England than initially promised. While plans set out in the 2019 election campaign indicated a budget increase of 3.3% a year above inflation during this Parliament, the actual spending has only risen by an average of 2.7% a year. Despite some extra funds allocated to cover high inflation, the government defended its record by highlighting the record levels of funding reaching £179.6bn for this year, making a “real difference” in cutting waiting lists.

The majority of the health budget in England goes to the NHS, with additional funds allocated for public health, social care, and training. However, the high rates of inflation globally present a challenge, with the pressure on the NHS to increase staffing levels under the 15-year NHS workforce plan demanding tough decisions.

More than 40% of public-service spending is already directed towards health, requiring other areas of government spending to be potentially cut in order to keep increasing the health budget.

Labour shadow health secretary Wes Streeting criticized Chancellor Rishi Sunak for not fulfilling promises on NHS funding, suggesting a lack of commitment to turning the health service around.

The Institute for Fiscal Studies research economist Max Warner emphasized the need for the next government to address this challenge promptly, as the budget for the Department of Health and Social Care will have significant implications for other government spending decisions.

NHS Providers, representing NHS trusts, stressed the urgent need for additional funding to alleviate