Rachel Reeves has announced billions of pounds to rescue the crisis-hit NHS.
Delivering her first Budget – with a whopping £40billion in tax rises – the Chancellor said the Tories’ austerity broke the health service. She said the government would use the tax increases to bring about the largest real terms increase outside Covid in day-to-day spending.
Ms Reeves confirmed there would be an extra £22.6billion for day-to-day spending over two years for the Department of Health and Social Care. She said this would ensure “we can now begin to move waiting lists down more quickly” and deliver on Labour’s pledge for an additional 40,000 NHS appointments a week.
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Announcing plans for the NHS, Ms Reeves told the Commons: “In the spring, we will publish a 10-year plan for the NHS to deliver a shift from hospital to community, from analogue to digital, and from sickness to prevention.
“Today, we are announcing a down payment on that plan to enable the NHS to deliver 2% productivity growth next year.”
She added: “Today, because of the difficult decision that I have taken on tax, welfare and spending, I can announce that I am providing a £22.6 billion increase in the day-to-day health budget, and a £3.1 billion increase in the capital budget, over this year and next year.
“This is the largest real-terms growth in day-to-day NHS spending outside of Covid since 2010.”
Among the funding announced on Wednesday, £1.5billion will be invested in new surgical hubs and scanners to help free up capacity in the NHS. An extra £70million will also be set aside for new radiotherapy machines.
Ahead of the Budget, Treasury insiders issued warnings the health service was facing a £9billion black hole after the Tories failed to put aside cash for public sector pay hikes.
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