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NHS gets £20bn 'birthday present' NHS gets £20bn 'birthday present'
(35 minutes later)
Extra funding for the NHS in England has been announced by ministers who are calling it a 70th "birthday present".Extra funding for the NHS in England has been announced by ministers who are calling it a 70th "birthday present".
Writing in the Mail on Sunday, the PM said the boost will partly be funded by the "Brexit dividend" that will arise once the UK stops EU payments. The PM told the BBC's Andrew Marr programme the boost will partly be funded by a "Brexit dividend" that will arise once the UK stops EU payments.
The spending plan means the £114bn-a-year budget will rise by over 3% a year on average in the next five years.The spending plan means the £114bn-a-year budget will rise by over 3% a year on average in the next five years.
That will mean by 2023 the budget will be £20bn a year more than it is now once inflation is taken into account.That will mean by 2023 the budget will be £20bn a year more than it is now once inflation is taken into account.
But crucially the plan just covers frontline budgets overseen by NHS England.But crucially the plan just covers frontline budgets overseen by NHS England.
About a tenth of the overall health budget is held by other bodies for things such as training and healthy lifestyle programmes, including stop smoking services and obesity prevention programmes.About a tenth of the overall health budget is held by other bodies for things such as training and healthy lifestyle programmes, including stop smoking services and obesity prevention programmes.
The BBC understands these will be protected, but beyond that it is unclear what will happen to them.The BBC understands these will be protected, but beyond that it is unclear what will happen to them.
The 2015 spending review - the last time a five-year settlement was announced - saw these budgets cut to help pay for an £8bn increase in NHS England's budget.The 2015 spending review - the last time a five-year settlement was announced - saw these budgets cut to help pay for an £8bn increase in NHS England's budget.
The deal has been reached after a series of meetings between the chancellor and Health Secretary Jeremy Hunt and NHS England chief executive Simon Stevens in recent weeks.The deal has been reached after a series of meetings between the chancellor and Health Secretary Jeremy Hunt and NHS England chief executive Simon Stevens in recent weeks.
They had been locked in negotiations after Prime Minister Theresa May promised there would be a long-term settlement agreed this year.They had been locked in negotiations after Prime Minister Theresa May promised there would be a long-term settlement agreed this year.
In her article for the Mail on Sunday, Mrs May said: "Now, as we leave the European Union and stop paying significant annual subscriptions to Brussels, we will have more money to spend on priorities such as the NHS. In her BBC interview she said the increase will exceed the £350m-a-week extra promised by Leave campaigners during the EU referendum campaign.
"But to give the NHS the funding it needs for the future, this Brexit dividend will not be enough."
'Superhuman efforts''Superhuman efforts'
With the NHS celebrating the 70th anniversary of its creation in July, there had been a desire to see something announced before then.With the NHS celebrating the 70th anniversary of its creation in July, there had been a desire to see something announced before then.
Mr Hunt said this had been achieved, giving the NHS a "fitting birthday present for our most loved institution".Mr Hunt said this had been achieved, giving the NHS a "fitting birthday present for our most loved institution".
He added: "It recognises the superhuman efforts made by staff over the last few years to maintain services in the face of rapidly growing demand. But it also presents a big opportunity for the NHS to write an entirely new chapter in its history."He added: "It recognises the superhuman efforts made by staff over the last few years to maintain services in the face of rapidly growing demand. But it also presents a big opportunity for the NHS to write an entirely new chapter in its history."
The announcement means extra money will also be made available for Scotland, Wales and Northern Ireland, although it will be up to the Welsh and Scottish governments to decide how that is spent.The announcement means extra money will also be made available for Scotland, Wales and Northern Ireland, although it will be up to the Welsh and Scottish governments to decide how that is spent.
Is this being paid by the Brexit dividend?
Alongside the five-year funding plan, ministers are expected to announce a new 10-year vision will be drawn up for the health service.
Details of this and how it will be carried out are expected to come in a speech by Prime Minister Theresa May on Monday.
But in her BBC interview, to be aired on Sunday, Mrs May claimed the funding boost is partly coming from a "Brexit dividend".
"Some people may remember seeing a figure on the side of a bus a while back of £350m a week in cash," she said.
"I can tell you that what I'm announcing will mean that in 2023-24 there will be about £600m a week, more in cash, going into the NHS.
"That will be through the Brexit dividend. The fact that we're no longer sending vast amounts of money every year to the EU once we leave the EU."
But Mrs May also acknowledged that "as a country" more will need to be contributed.
She did not spell out that would require tax rises, although a recent report by the Institute for Fiscal Studies said they would be needed as it was hard to imagine the money could be found from economic growth or raiding other areas of government spending.
Is this more than expected?Is this more than expected?
There has been a lot of speculation that Mr Hunt - supported by Mr Stevens - had been pushing for close to 4% a year extra.There has been a lot of speculation that Mr Hunt - supported by Mr Stevens - had been pushing for close to 4% a year extra.
This was the figure many in the health service had said was needed to get services back on track and to improve waiting times.This was the figure many in the health service had said was needed to get services back on track and to improve waiting times.
Reports have suggested the Treasury were initially offering less than 3%.Reports have suggested the Treasury were initially offering less than 3%.
So the 3.4% average appears to be a compromise between the two camps - and is close to the 3.7% average increase the NHS has seen if you look back over the last 70 years.So the 3.4% average appears to be a compromise between the two camps - and is close to the 3.7% average increase the NHS has seen if you look back over the last 70 years.
The final picture is somewhat clouded by the lack of clarity about what will happen to the wider health budget.The final picture is somewhat clouded by the lack of clarity about what will happen to the wider health budget.
What it does mean is that the five-year funding plan announced in 2015, which was meant to see the budget increase by £8bn above inflation by 2020, has been effectively ended two years early.What it does mean is that the five-year funding plan announced in 2015, which was meant to see the budget increase by £8bn above inflation by 2020, has been effectively ended two years early.
And that comes after ministers agreed in autumn 2017 to top that up by another £2.8bn.And that comes after ministers agreed in autumn 2017 to top that up by another £2.8bn.
Analysis: By Hugh Pym, BBC News Health EditorAnalysis: By Hugh Pym, BBC News Health Editor
Its been a protracted Whitehall wrangle.Its been a protracted Whitehall wrangle.
The Treasury, mindful of pressures across public finances, was reluctant to offer the NHS much more than 2% in real terms per year.The Treasury, mindful of pressures across public finances, was reluctant to offer the NHS much more than 2% in real terms per year.
NHS leaders made it clear that only a 4% annual increase would allow an improvement in services.NHS leaders made it clear that only a 4% annual increase would allow an improvement in services.
In the end, with the 3.4% agreed deal the NHS didn't quite get what it hoped for but the Treasury was pushed higher than it originally wanted after forceful lobbying by Jeremy Hunt.In the end, with the 3.4% agreed deal the NHS didn't quite get what it hoped for but the Treasury was pushed higher than it originally wanted after forceful lobbying by Jeremy Hunt.
The head of NHS England, Simon Stevens, has welcomed his 5 year allocation. But the deal does not cover public health or medical and nurse training budgets and only when they are unveiled in the autumn with a complete picture on health funding in England become clear.The head of NHS England, Simon Stevens, has welcomed his 5 year allocation. But the deal does not cover public health or medical and nurse training budgets and only when they are unveiled in the autumn with a complete picture on health funding in England become clear.
'Don't forget social care''Don't forget social care'
Ian Dalton, head of NHS Improvement, a regulator in charge of monitoring performance in the health service, said: "This settlement is good news for the NHS, those who use it and those who work for it.Ian Dalton, head of NHS Improvement, a regulator in charge of monitoring performance in the health service, said: "This settlement is good news for the NHS, those who use it and those who work for it.
"It will enable the dedicated staff in our NHS to go on improving the care we can offer the patients.""It will enable the dedicated staff in our NHS to go on improving the care we can offer the patients."
But Chris Hopson, chief executive of NHS Providers, which represents NHS trusts, said the settlement was the "minimum" that was needed.But Chris Hopson, chief executive of NHS Providers, which represents NHS trusts, said the settlement was the "minimum" that was needed.
"After almost a decade of austerity, the NHS has a lot of catching up to do.""After almost a decade of austerity, the NHS has a lot of catching up to do."
He also pointed out that the government needed to work out what it was going to do about social care run by councils.He also pointed out that the government needed to work out what it was going to do about social care run by councils.
Ministers have promised the system, covering care homes and help at home, will be reformed soon to ensure there is better access to services.Ministers have promised the system, covering care homes and help at home, will be reformed soon to ensure there is better access to services.