The October Budget: What Does it Mean for an NHS in Crisis?

'Politicians from across the political spectrum, often to the dismay of unions, argue that ‘throwing money’ at the NHS is not the answer, ‘reform is’.'

by Anonymous 09/12/2024

While farming dominates the news surrounding the budget, the critical state of our National Health Service (NHS) should not be overlooked. Currently the NHS is facing an exodus of staff, a shortage of beds and ballooning waiting lists. An impending NHS winter crisis is likely. However, things have not always been this way.

In 2010, a decade of funding in line with Europe had positioned it as the best healthcare service in the world, with some of its lowest waiting times in history according to the Common Wealth Fund, an American healthcare research foundation. Patient and staff satisfaction were at record highs. Like universities, schools and the rest of our public sector, the NHS has been hollowed out by 14 years of austerity. In practical terms, austerity meant the NHS faced the longest sustained reduction in funding (as a percentage of GDP) since it was founded.

As a result, waiting lists almost doubled from 2.3 million in 2010 to 4 million in 2019. This trend continued, with waiting lists reaching 6 million in 2021 (after Covid-19) and, as of this year, reaching 7 million people. Alongside this, waiting time targets in A&E have not been consistently met since 2013. As a result, it is estimated austerity is responsible for 120,000 excess deaths.

Alongside this, junior doctor, consultant and nurse pay has seen erosion of up to 35%. A staff exodus has ensued, and in 2019 the NHS was 10,000 short of doctors and 40,000 short of nurses. This means remaining healthcare professionals must work longer hours in deteriorating conditions, accelerating burnout and the cycle of exodus. As a result, patient and staff satisfaction have both dwindled, although support for the NHS as a public service remains strong according to YouGov polling.

Politicians from across the political spectrum, often to the dismay of unions, argue that ‘throwing money’ at the NHS is not the answer, ‘ reform is’. The Lord Darzi report on the NHS contradicted this completely – revealing the system of funding was not the reason for high waiting lists, staff shortages and excess deaths. The report argues funding and staff pay are critical to addressing this crisis. This sentiment is echoed by doctors’ and nurses’ unions, with British Medical Association Deputy-Chair Dr Emma Runswick calling for a 20% increase in NHS funding.

It is in this context that Labour came to power in July and announced their October budget, which offers a 3.8% annual increase in day to day spending (a £22.6 billion increase). Capital spending will be increased by 10.9%, meaning another £13.6 billion increase. While this is a significant increase, many other European countries including Germany and France maintain higher per capita spending in their healthcare systems, and it does not take the UK’s health service to the average levels of European health spending. Due to austerity, there is a significant backlog for any increased capital investment to deal with. Outdated buildings and facilities will need to be changed - and the cost of building repairs alone comes to £14 billion.