News / Wales plans 2.5% funding increase

Spending on health, wellbeing and sport in Wales will rise to around £7bn under draft proposals for 2017/18 – a 2.5% real terms increase.

However, in its draft Budget published in October, the government said the Department of Health, Wellbeing and Sport’s capital funding will drop by 10% to around £245m.

In a report issued before the Budget, the Health Foundation said long-term sustainability was possible for the NHS in Wales, but it would require greater efficiency and funding growth. It said that if funding grew in line with the NHS in England – an average of 0.7% a year – there would be a £700m shortfall by 2019/20. However, 1% efficiencies a year plus savings in pay growth would reduce the gap to £150m.

Responding directly to the Health Foundation analysis, the draft Budget document said the position was challenging, but an additional £240m will be spent on the NHS in 2017/18. This would allow NHS organisations to: meet the rise in costs and demand, including pay awards; deliver more care in primary and community settings; maintain investment in new therapies; and ensure high-quality care, it said.

The government said agreement had been reached on a number of measures with the second biggest
party Plaid Cymru. The parties had agreed spending of more than £40m for some specific services, including £20m of the additional £240m for mental health services, £15m for diagnostic equipment and £7m for clinical education.

Anita Charlesworth (pictured above), the Health Foundation’s director of research and economics, said the additional funding was a welcome recognition of the pressures on the health service.

But she added: ‘The NHS faces long-term challenges, and public finances in Wales will be under considerable pressure for the rest of this decade. It is therefore essential that this additional money is used to support the transformative change and improved efficiency that will help the health service in Wales to continue to meet patient needs. Alongside funding, the NHS in Wales needs a comprehensive workforce strategy.’