HSJ reports that the NHS in England is set to face a multiyear funding squeeze for the first time since the 1950s. Updated inflation forecasts reveal the health service will be hit by two more years of real terms cuts on top of a reduction this year, meaning NHSE’s budget will be 2.2 per cent smaller in real terms in 2024-25 than it was in 2021-22.
Earlier this month, NHSE’s finance lead Julian Kelly laid out a bleak assessment that pressures in future years could force the health service to “completely revisit” investment in areas including cancer, mental health and diagnostics. Under the worst case, he warned the NHS could have to find nearly £20bn in savings by 2024-25.
Mr Kelly was speaking in reference to September inflation forecasts that showed a sharp cut in the current year. Updated estimates produced by the Institute for Fiscal Studies and investment bank Citi, shared with HSJ, suggest the outlook has worsened, with two more years of real terms cuts in 2023-24 and 2024-25.
Full story in HSJ, 27 October 2022