News / Real terms increases for Scottish boards

By Seamus Ward

Health boards will have increased allocations in 2013/14 after accounting for inflation, the Scottish government announced in its draft Budget.

NHS spending will increase from £8.8bn in the current financial year to £9bn. Overall, NHS and special health board spending will increase by 0.45% in real terms in 2013/14. The draft Budget also planned a 0.25% real terms rise for these organisations in 2014/15.

Territorial health boards – those covering geographical areas, such as NHS Lothian – are to receive an average 0.8% real terms increase in funding in 2013/14. The increase, equivalent to 3.3% in cash terms, would be followed by a further cash terms increase of 3.1% in 2014/15.

While eight of the territorial boards will receive a 2.7% cash uplift, six will get more (ranging from 2.9% to 4.6%) to move them closer to their target allocations.

Patient-facing special health boards, such as the NHS Scottish Ambulance Service and the Waiting Times Centre, have been allocated a cash increase of just 1%, while those that do not directly serve patients will have their budgets cut by between 0.5% and 4% in cash terms.

The Scottish government said all health boards would be asked to make efficiency savings of at least 3% in 2013/14, though non-patient facing boards will again be asked to make greater efficiencies. All savings will be reinvested in frontline care.

Health and wellbeing secretary Alex Neil said he was committed to protecting spending on health. ‘Despite a difficult economic climate, we know how important it is that we continue to invest in our NHS,’ he said.

‘That is why we have protected health spending, so we can continue to deliver a first-class service to patients across the country. It is right that despite protected budgets the NHS is as efficient as possible with taxpayers’ money.’

Capital spending will increase by £10m in 2013/14 and £25m in 2014/15. The draft Budget said capital and revenue allocations reflected the increase in the health budget in England.

Mr Neil’s portfolio also includes sport and he announced that £133m would be allocated to fund sport and the Commonwealth Games, which are due to be held in Glasgow in 2014.