Budget Tax and Borrowing Hikes Won’t Undo ‘14 Years of Damage’ to NHS: Reeves

Labour’s first budget in 14 years is widely expected to announce public spending cuts, while ministers warn of ’real problems’ for the NHS this winter.
Budget Tax and Borrowing Hikes Won’t Undo ‘14 Years of Damage’ to NHS: Reeves
Chancellor of the Exchequer Rachel Reeves during a press conference following her statement to the House of Commons on the findings of the Treasury audit into the state of the public finances, in London on July 29, 2024. Lucy North/PA
Evgenia Filimianova
Updated:

The looming tax hikes and borrowing increases in the upcoming Budget may not be enough to undo “14 years of damage” to the national healthcare system, Chancellor Rachel Reeves has warned.

Ahead of Labour’s first Budget in 14 years on Wednesday, Reeves announced more details of NHS spending, pledging funding to deliver 40,000 elective appointments per week. This includes an additional £1.8 billion for elective appointments since July.

The cash influx is meant to help reduce waiting times and includes £1.5 billion for new surgical hubs and scanners, alongside £70 million for new radiotherapy machines.

The Treasury will also set aside billions of pounds to invest in technology and digital innovations across the NHS.

The Chancellor has warned that a single Budget won’t “undo 14 years of damage” to the NHS and vowed to tackle the “huge backlog” of patients waiting for appointments.

“Our NHS is the lifeblood of Britain. It exemplifies public services at their best, there for us when we need it and free at the point of use, for everyone in this country. That’s why I am putting an end to the neglect and underinvestment it has seen for over a decade now.

“We will be known as the government that took the NHS from its worst crisis in its history, got it back on its feet again and made it fit for the bright future ahead of it,” Reeves said in a statement.

Health Secretary Wes Streeting said that although the NHS remains a priority for the government, there is no magical solution to the crisis in healthcare.

“What this Budget will enable us to do is arrest the decline in the NHS and start fixing the foundation so we can not only get the NHS back on its feet, but make sure it’s fit for the future as part of our long-term plan.

“I can’t pretend that we’re going to be able to wave a Labour magic wand and make all of those problems go away this winter. There will still be real problems this winter, but we’re not going to deny the scale of the problems, and we are already supporting system leaders, particularly in places that tend to have the most challenge at winter, to try and minimise the risk this winter,” Streeting said.

Plans and ‘Difficult’ Choices

Streeting welcomed the announcement of extra funding for the NHS and said it will reduce the “unacceptable” waiting lists that stand at 7.6 million.
The funding comes after the government last week launched a national consultation on the future of the NHS and called on stakeholders to help shape the government’s 10-year health plan.

The results will be published in spring 2025 and will include “big shifts” in health care, such as neighbourhood health centres, preventative health care and reform of patient health records management.

Labour’s 10-year health plan will effectively replace the previous government’s vision for the NHS. The Conservatives published the NHS Long Term Workforce Plan in June last year.

A Conservative Party spokesman said: “If Labour are serious about ensuring the NHS delivers for patients, they must continue this reform instead of holding yet further consultations. The health secretary promised no more money without reform–but where is it?”

Speaking in the House of Commons on Tuesday, Reeves defended the “difficult choices” the government had to make, faced with an “inherited a 22 billion black hole in the public finances.”

This includes cuts to winter fuel payments for older people in England and Wales who don’t receive certain means-tested benefits.

The Budget may include a 6 percent rise in the minimum wage, with an even bigger increase for younger workers. Streeting says sharing some Budget details early is important to prevent surprising the markets.

PA Media contributed to this report. 
Evgenia Filimianova
Evgenia Filimianova
Author
Evgenia Filimianova is a UK-based journalist covering a wide range of national stories, with a particular interest in UK politics, parliamentary proceedings and socioeconomic issues.