Briefing on the funding of the NHS in Scotland

Current and planned levels of NHSiS funding

Table

Additional funding from the March 2000 Budget for the NHSiS is as follows:
£m2000-012001-022002-032003-04
     
Budget 20001732686871,140

Thus spending for the current year 2000/01 totals £5,416.5m and in 2001/02 it is planned to be £5,823.8m.
Additional funding from the Budget reinforces existing supplementary money made available to the NHSiS by the Labour administration since their election in May 1997.

Additional Funds Made Available to the NHSiS since 1 May 1997

 1997-981998-991999-002000-012001-02
£m£m£m£m£m
Winter pressures1722 - - -
General Increase for NHS -107 - - -
Waiting lists -44 - - -
Comprehensive spending review - -300590910
HM Treasury capital modernisation funds - -101417
intensive care and high dependency beds - -14 - -
Total17173324604927
Source: Written Answer; House of Lords 21 March 2000; Lords Hansard Column WA25.

Spending in real terms
Much attention has been focused on spending in real terms since the Prime Minister’s announcement in January 2000 that the NHS in England and Wales is to receive funding at the rate of 5% above inflation from next year until 2006. Following the Budget, the Chief Medical Officer in Scotland stated that health spending will rise from £5.42 billion in 2000/1 to £6.69 billion in 2003/4. This amounts to a 35.7 % rise in cash terms and real terms increase of 23.2% over the four years. (From the Chief Medical Officer, Health Bulletin, 58 (3), May 2000, Scottish Executive Health Department, p155)

A more detailed breakdown of the annual percentage real terms increase in funding for the health service was given in a written answer to a question in the Scottish Parliament.

Year
Annual percentage real terms increases at
1998-99 prices
 
 
1979-80
2.0
1980-81
6.7
1981-82
4.3
1982-83
1.2
1983-84
1.8
1984-85
1.9
1985-86
0.6
1986-87
2.8
1987-88
3.1
1988-89
4.2
1989-90
1.5
1990-91
1.3
1991-92
5.9
1992-93
6.2
1993-94
0.3
1994-95
3.1
1995-96
0.7
1996-97
0.3
1997-98
0
1998-99
2.1
1999-00*
7.9
2000-01+
4.3
2001-02+
4.9
2002-03+
4.6
2003-04+
4.6

* Based on estimated outturn.
+ Based on planned expenditure.

Source: Scottish Parliament, Written Answer No. S1W-05677, 22 June 2000.

© British Medical Association 2008

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