Budget 2024 – What are the funding commitments for the Health and Social Care sector?

Chancellor of the Exchequer Rachel Reeves delivered the Autumn Budget 2024 on Wednesday. Coming so soon after the findings in Lord Darzi’s review into the state of the NHS in England, the emphasis on extra funding made available to the NHS and the social care sector, both in terms of day-to-day spending and extra capital for long-term investment, was expected.

The key changes announced by the Chancellor include:

• £22.6bn increase in total health and social care revenue and capital funding;
• The health and social care capital budget will increase by 9.8% and 12.1% this year and next year, respectively;
• NHS England’s budget will increase by 4.7% this year to £181.4bn and then another 3.3% next year to £192bn. Part of the increase will go to paying for previously unfunded commitments such as pay deals and existing deficits;
• £1.5bn extra for new surgical hubs, scanners, and new beds with the aim to reduce waiting times;
• £70m extra for new radiotherapy machines;
• £1bn investment to fix reinforced autoclaved aerated concrete (RAAC) in hospitals; and
• £2bn for NHS technology and digital, although this is contingent on the NHS achieving a 2% productivity increase next year. 

The extra funding for NHS technology and digital aligns with the Government’s pledge, following the Lord Darzi review, to “move from an analogue to a digital NHS”. 

Also of note is the protection of core research and development budgets, with funding for the National Institute for Health and Care Research seeing a real-term increase. 

Aside from the specific NHS and are focused changes, independent health and care providers will be affected by the rises in employer contributions in national insurance, although there is currently some uncertainty over the extent to which these changes will affect GP practices, with DHSC expected to provide clarification soon. The BMA have already been vocal in their objections to any rise in NI contributions for GPs, and the impact it would have on primary care. Social Care providers, via the Independent Care Group, have also been critical of the changes, claiming that the changes will lead to a rise in care home fees. 

The King's Fund have responded to the budget to say that;

‘On the whole, this budget has been a starting point for the investment and reform that is needed to begin to stabilise the trajectory of NHS performance, but it is not enough for the system to deliver the wholesale shift needed for a health and care system fit for the future. To achieve that, more funding will be needed in next year’s Comprehensive Spending review.’

If you would like to discuss any of the above please contact a member of our Healthcare team.

This article was written by Matthew Pegler.