F0ul Thoughts

Mild mannered on the outside, Free thinker on the inside

The truth about the NHS budget

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I was watching Newsnight last night, and was getting annoyed with all the spin being spun about who did what and how much money can be saved etc.etc.

Thanks to this wonderful internet, I was able to check some facts.

The NHS has a budget of £37 Bn in 1997, when Nu Labour got into power.

The latest NHS budget (2009-10) was £103 Bn.  That is a huge increase of £66 Bn over 13 years.

However, inflation has also increased at a huge rate in that 13 years.  The RPI index in 1997 was 154, where as in 2010 it was 218.  That means that something that cost £154 in 1997, would now cost £218 – assuming nothing else, such as cheaper manufacturing processes, new tax policies or buying habits changed in any way.

So, taking the budget of £37 Bn and multiplying it by the index rate, you would end up with a value of £89 Bn.

Basically, over a 13 year period, Nu Labour increased the NHS budget by just over £1 Bn per year over the rate of inflation – not quite as exciting now as it could have been!

So, when it comes to savings, what can be done?

Well, over that 13 years, the number of employees has shot up by almost 500,000 people.  Now, how many of those people are actually in the wards helping people get better?  How many of them are employed to do paperwork?  More importantly, why are they doing paperwork? What about the jobs which have been created to change the concept of the NHS?

The NHS is about, or at least is sold as being a service to ensure that ill people can get better, regardless of their income.  However, over the past few years, its become more about not getting ill in the first place.  Its become a campaigning organisation employing thousands of people to tell us not to eat more than 5 fags a day, ensure we get plenty of scans of our obese family and to not do any thing dangerous just in case!

Maybe that is what can be cut as a way of finding a few extra quid?

Just a thought!


Written by f0ul

April 8, 2010 at 10:53 pm

Posted in economics

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