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May’s long-term cash pledge could need Labour support

Daniel Leal-Olivas/PA Wire/PA Images

Healthcare experts have given a cautious welcome to prime minister Theresa May’s promise to unveil a “long-term, sustainable funding plan” for the NHS later this year, warning that the funding gap was unlikely to be plugged without tax increases and cross-party agreement on a long-term funding regime for both health and social care.

May told a meeting of Commons select committee chairs on 27 March that ministers would publish a new funding plan for the NHS ahead of next year’s planned Whitehall spending review. “I want that to be done in conjunction with NHS leaders and provide a multiyear funding settlement consistent with our fiscal rules and balanced approach,” she said.

“Ensuring the NHS can cope with demand ahead of the spending review, I would suggest we can’t wait until next Easter,” she added. “I think in this 70th anniversary year of the NHS’s foundation we need an answer on this.”

A ten-year settlement?

Whitehall sources suggested health secretary Jeremy Hunt was pushing for a ten-year funding settlement, with Chancellor Phillip Hammond considering a £4bn funding boost to mark the NHS’s 70th birthday on 5 July this year.

King’s Fund chief executive Chris Ham welcomed the announcement but warned that the NHS funding gap was set to widen to £20bn by the end of this parliament, and that social care services needed an immediate injection of at least £2.5bn to meet current demand.

“The prime minister’s announcement is welcome recognition that the NHS can no longer maintain standards of care with the funding it has been given,” he said. “A new health and social care settlement is required to stabilise services and enable them to plan with certainty for a growing and ageing population.”

Professor Anita Charlesworth, director of economics and research at the Health Foundation, said meeting the NHS’s long-term funding needs, while hitting targets to reduce government debt, “will almost certainly require a commitment to increase tax”.

“A commitment to long-term stable funding for the NHS is a really important development,” she added. “But a 10-year settlement will span a general election and, if it’s to hold, there will need to be cross-party support.”

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