HISTORIC PRESS RELEASE : Extra 300 million pounds for NHS patient care [October 1997]
The press release issued by HM Treasury on 14 October 1997.
The NHS will get an extra 300 million Pounds for patient care this winter as a result of a reordering of spending priorities, the Chancellor Gordon Brown announced today. This extra funding comes on top of the 1.2 billion Pounds for the NHS next year announced in the Budget.
300 million Pounds has been made available for patient care by a reallocation of 270 million Pounds from other Departments on top of 30 million Pounds in new administrative savings identified within the NHS. To further help NHS funding, the Government will introduce at the earliest available opportunity a Bill to improve collection of Road Traffic Act payments from insurance companies.
The 300 million Pounds for this winter will go in extra funds targeted to where they are most needed through the whole country, and come as part of a series of announcements about the use of NHS resources being made today by Frank Dobson, the Health Secretary. Among the new measures are a new expert to tackle prescription fraud and a best practice initiative involving the co-operation of senior NHS staff to improve performance. This is in addition to the proposed amalgamations of NHS Trusts already announced. Once fully in place the Road Traffic Act reform is estimated to yield 100 million Pounds extra every year, to be devoted to patient care.
The measures arise from the “saving before spending” approach of the Chancellor and the Chief Secretary, based on a fine of 168 million Pounds on the Ministry of Defence for overspending, and 102 million Pounds of provision no longer needed by the public sector nuclear industry as a result of their improved performance.
Chancellor Gordon Brown said:
“This new money for NHS patient care will go to where it is needed most.
The Government’s approach is clear.
We will maintain the control totals we set and therefore achieve the public spending discipline needed for sustainable finances. Savings will be found from within existing resources.
And we will use money saved to fund our priorities, of which NHS patient care is one.
Indeed, we will continue to be relentless in our search for savings, where money can be redirected to priorities.
The new initiatives, including the appointment of best practice teams, will ensure better use of resources. We are satisfied that the money announced today will go to where it is needed most, for patient care during the winter months.”
