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Key Labour NHS pledge impossible to deliver, says influential thinktank Key Labour NHS pledge impossible to deliver, says influential thinktank
(about 2 months later)
One of Labour’s key NHS election pledges, designed to protect services from being privatised, has been rejected as impossible to deliver by the King’s Fund.One of Labour’s key NHS election pledges, designed to protect services from being privatised, has been rejected as impossible to deliver by the King’s Fund.
The influential health thinktank has warned that it would be extremely unlikely that a Labour government could implement Andy Burnham’s promise to exempt the NHS from EU procurement and competition rules.The influential health thinktank has warned that it would be extremely unlikely that a Labour government could implement Andy Burnham’s promise to exempt the NHS from EU procurement and competition rules.
The shadow health secretary committed Labour to “claiming a full exemption for the NHS from EU procurement and competition law” when he launched the party’s 10-year plan for the NHS in January. He has pledged to repeal the unpopular Health and Social Care Act and reverse the creeping privatisation of services that has occurred under the coalition.The shadow health secretary committed Labour to “claiming a full exemption for the NHS from EU procurement and competition law” when he launched the party’s 10-year plan for the NHS in January. He has pledged to repeal the unpopular Health and Social Care Act and reverse the creeping privatisation of services that has occurred under the coalition.
But in a briefing paper on Wednesday, the thinktank, which is politically neutral, concludes that: “An incoming government could not, in our view, secure formal exemptions for the NHS from EU procurement or competition rules.”But in a briefing paper on Wednesday, the thinktank, which is politically neutral, concludes that: “An incoming government could not, in our view, secure formal exemptions for the NHS from EU procurement or competition rules.”
Its intervention led Jeremy Hunt, the health secretary, to claim that Burnham’s pledge was part of Labour’s alleged plan to “weaponise” the NHS as an issue before 7 May.Its intervention led Jeremy Hunt, the health secretary, to claim that Burnham’s pledge was part of Labour’s alleged plan to “weaponise” the NHS as an issue before 7 May.
Related: NHS funding: plenty of manifesto pledges, but fewer firm figures | Letters
On procurement policy, it says that while Labour ministers could repeal the coalition’s controversial section 75 regulation, which came into force in 2013, commissioners of NHS services would still need to comply with EU procurement rules.On procurement policy, it says that while Labour ministers could repeal the coalition’s controversial section 75 regulation, which came into force in 2013, commissioners of NHS services would still need to comply with EU procurement rules.
“It is extremely unlikely that the government would be able to negotiate an exemption for the NHS from those EU rules. No other member states have secured special treatment in this area. It is almost impossible to overstate the political, legal and practical obstacles it would need to overcome,” the King’s Fund says.“It is extremely unlikely that the government would be able to negotiate an exemption for the NHS from those EU rules. No other member states have secured special treatment in this area. It is almost impossible to overstate the political, legal and practical obstacles it would need to overcome,” the King’s Fund says.
Similarly, it says that an NHS optout from EU competition law would be extremely difficult to secure. “Such a change would require changes to some of the most fundamental provisions of the EU treaties, which would be extremely unlikely to be negotiable. The European commission has no formal powers to exempt a particular sector in a particular member state from rules established in the EU treaty.”Similarly, it says that an NHS optout from EU competition law would be extremely difficult to secure. “Such a change would require changes to some of the most fundamental provisions of the EU treaties, which would be extremely unlikely to be negotiable. The European commission has no formal powers to exempt a particular sector in a particular member state from rules established in the EU treaty.”
The only way Labour could secure their objective, in the fund’s view, is by instigating another overhaul of the NHS, which it has already ruled out. It would have to regain the sort of control over the NHS in England that the Scottish and Welsh governments have over their NHS, in order to evade EU law.The only way Labour could secure their objective, in the fund’s view, is by instigating another overhaul of the NHS, which it has already ruled out. It would have to regain the sort of control over the NHS in England that the Scottish and Welsh governments have over their NHS, in order to evade EU law.
“Labour could achieve their aim of insulating the NHS from EU procurement and competition rules, but this would require broader changes to policy than legislating for exemptions. Specifically, it would mean bringing foundation trusts back clearly under the direct control of government.“Labour could achieve their aim of insulating the NHS from EU procurement and competition rules, but this would require broader changes to policy than legislating for exemptions. Specifically, it would mean bringing foundation trusts back clearly under the direct control of government.
“This would be a shift against the direction of government policy over the last 15 years,” said Richard Murray, director of policy at the thinktank, which consulted legal experts in procurement and competition in drawing up the briefing.“This would be a shift against the direction of government policy over the last 15 years,” said Richard Murray, director of policy at the thinktank, which consulted legal experts in procurement and competition in drawing up the briefing.
Labour, however, said the King’s Fund had misinterpreted its policy. “We have checked our position with the European commission and we have been given clear advice that we can legislate to place the NHS outside of EU procurement rules. The King’s Fund has got Labour’s policy wrong. In fact, this report validates our policy,” insisted a Labour spokesman.Labour, however, said the King’s Fund had misinterpreted its policy. “We have checked our position with the European commission and we have been given clear advice that we can legislate to place the NHS outside of EU procurement rules. The King’s Fund has got Labour’s policy wrong. In fact, this report validates our policy,” insisted a Labour spokesman.
“They are wrong to suggest that our policy is to claim a specific, formal exemption from EU rules. Labour will change the policy architecture of the NHS so it is exempt from these rules. By ‘claiming an exemption’ we mean making the necessary changes to ensure the NHS is not subject to EU procurement and competition law, as it is our right to do.“They are wrong to suggest that our policy is to claim a specific, formal exemption from EU rules. Labour will change the policy architecture of the NHS so it is exempt from these rules. By ‘claiming an exemption’ we mean making the necessary changes to ensure the NHS is not subject to EU procurement and competition law, as it is our right to do.
“The King’s Fund analysis proves that is indeed possible, using measures very similar to those set out in Clive Efford’s recent private member’s bill”, he added.“The King’s Fund analysis proves that is indeed possible, using measures very similar to those set out in Clive Efford’s recent private member’s bill”, he added.
But Hunt said: “Just weeks from the election, this independent report makes definitively clear that Labour are wrong to suggest this government introduced competition into the NHS and wrong to suggest their reforms could remove it without undoing decades of reform and causing huge upheaval.But Hunt said: “Just weeks from the election, this independent report makes definitively clear that Labour are wrong to suggest this government introduced competition into the NHS and wrong to suggest their reforms could remove it without undoing decades of reform and causing huge upheaval.
“Labour’s health plans, already ridiculed by senior Labour figures, are once again exposed as a cynical political attempt to ‘weaponise’ the NHS, rather than a credible policy for improving people’s healthcare,” he added.“Labour’s health plans, already ridiculed by senior Labour figures, are once again exposed as a cynical political attempt to ‘weaponise’ the NHS, rather than a credible policy for improving people’s healthcare,” he added.