Welsh draft Budget focuses on NHS

In documents published in late December, the government said it would help NHS bodies ‘maintain the financial stability they have worked hard to secure in recent years’. To help ensure financial sustainability, the draft Budget allocates £180m recurrently from 2022/23 to help the health service manage the financial impact of the pandemic on their underlying financial position. This includes recognising the effect of Covid-19 on productivity and efficiency.

The government added that it expects NHS activity to return to pre-pandemic levels as the impact of Covid-19 on core services eases.

Finance minister Rebecca Evans (pictured) said that, over the next three years, the Welsh NHS will receive an overall boost in core spending of almost £1.3bn, taking total investment to nearly £9.7bn. The service would be supported to provide effective, high quality and sustainable healthcare, and receive help in its ongoing response to and recovery from the pandemic.

The £1.3bn increase would provide a foundation for the ongoing Covid response, and address pandemic-related backlogs. To support recovery, local health boards will receive an extra £170m to help implement plans to strengthen planned care services.

A further £20m in 2022/23 will support a value-based approach to recovery in the medium term, with a focus on improving outcomes that matter to patients.

The Test, Trace and Protect programme will continue to be funded, including a recurrent £6.4m for Public Health Wales to maintain testing capacity. Funding for future vaccination programmes and personal protective equipment has also been set aside, the government added.

There will also be additional support for staff, with £31m allocated for education and training and £7m for establishing a new medical school in North Wales. Support for recruitment in social care includes the introduction of a real living wage of £9.90 an hour from April.

The Welsh NHS Confederation said it was ‘broadly pleased’ with the draft Budget, which reflected some of the key priorities for local NHS leaders. Its director, Darren Hughes, welcomed the introduction of the real living wage for social care workers.

He added: ‘We also welcome the promise of recurrent funding for both the direct response to the pandemic and to help the NHS manage the financial impact of the pandemic on their underlying financial position, as we see this continue to have a significant impact on health and care services in the medium term.

‘However, our members are disappointed in the lack of investment in capital infrastructure to improve and redesign NHS estates and facilities. Not only is this key to improving services for the people of Wales in the years to come, but it has much wider implications, including the NHS’ ability to reduce its environmental impact and positively contribute and respond to the climate emergency.’

The Welsh NHS Confederation said it was ‘broadly pleased’ with the draft Budget, which reflected some of the key priorities for local NHS leaders. Its director, Darren Hughes, welcomed the introduction of the real living wage for social care workers.

He added: ‘We also welcome the promise of recurrent funding for both the direct response to the pandemic and to help the NHS manage the financial impact of the pandemic on their underlying financial position, as we see this continue to have a significant impact on health and care services in the medium term.

‘However, our members are disappointed in the lack of investment in capital infrastructure to improve and redesign NHS estates and facilities. Not only is this key to improving services for the people of Wales in the years to come, but it has much wider implications, including the NHS’ ability to reduce its environmental impact and positively contribute and respond to the climate emergency.’