Tuesday, 20 February 2007

NHS deficit rises to over £1.3 billion

The Daily Telegraph reports today that the NHS is sliding further into debt, making further cuts to services more likely.

The total NHS deficit has risen from an original estimate of
£500 million when problems first arose to £1.3 billion today.


The NHS budget is set to break even over this financial year, but only after slashing £450 million from the cost of training NHS staff. NHS chief executive David Nicholson has said that the accumulated deficit would however take years to clear.

Norman Lamb, the Liberal Democrat health spokesman is quoted as saying "Scores of trusts are under immense pressure to clear historic deficits, and are forced to make cuts in so called 'soft target' services."

There was warning of further trouble ahead for the NHS if such cuts impinge on nurses pay, as a poll for the Royal College of Nursing (RCN) revealed that nearly two-thirds of nurses would be willing to take industrial action if they receive an unsatisfactory pay deal this year.

The Times also carries a report on the worsening situation in the NHS, quoting Dr Peter Carter, general secretary of the RCN.

Dr Carter said “Ministers today might try to claim a small NHS surplus but this smoke-and-mirrors figure has only been achieved by raiding essential NHS training budgets, freezing posts, shedding jobs and cutting patient services.”

The reality is that all these problems could be solved in the course of a few weeks by drawing a halt to the vast amounts of money currently being sent to the EU. EU auditors remain unable to explain how the "majority" of that money is being spent, while reports of fraud continue to flow. Billions are being wasted and public services suffer while MPs do not act.

At the very least, MPs need to block Blair's unjustified plan to increase payments to the EU by the 60%, by voting against the EU budget deal when it comes before Parliament in the near future.

The resulting proceeds can be immediately redistributed to more urgent public priorities, like maintaining essential local health services. Or rural post offices. Or increasing pensions...

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