News / Déjà vu on board allocations

Health boards and special health authorities in Scotland are to receive the same percentage uplift in their revenue allocations in 2009/10 as they did in the current year, despite the implementation of a new resource allocation formula.

The 2009/10 financial year is the first time allocations are based on the NRAC (National Resource Allocation Committee) formula. But a Scottish government spokeswoman told Healthcare Finance there was limited scope for significant movement in boards’ relative shares over this spending review period.

Revenue budgets will rise by 3.3% overall to £7.2bn, with boards that are over target receiving the minimum 3.15% uplift. Six boards will receive higher levels of uplift, reflecting the fact that they are below target, ranging from 3.46% (Grampian) to 3.81% (Fife). NHS Greater Glasgow and Clyde will take the biggest share of the funding in cash terms (£1.825bn).

Boards have been given capital allocations of £329m for 2009/10 and £334m for 2010/11. They will be expected to make 2% efficiency savings in 2009/10.

Health minister Nicola Sturgeon pointed out that health boards would share record levels of funding – they will get £8.64bn in capital and revenue allocations. But political opponents said the overall increase represented a 2.6% uplift.

Labour health spokesman Richard Simpson said the increase was the lowest since devolution. ‘It is an historically low allocation that will represent a real terms cut for much of Scotland. SNP ministers are failing to pass on the 6.7% year-on-year overall increase that the UK government is delivering for the NHS in England,’ he added.

However, Ms Sturgeon commented: ‘This record funding for NHS boards across Scotland underlines this government’s unshakeable commitment to our publicly-owned health service.

‘It means health boards will have the resources they need to progress their plans and offer a first-class service to patients across Scotland.’