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Admin (Retired)
- Relationship to Diabetes
- Type 1
Boris Johnson successfully captured the weekend headlines with his announcement of a £1.8bn “cash injection” for the NHS capital budget – which covers buildings and equipment. But the prime minister quickly became bogged down in allegations that the £1bn pledged upfront this year wasn’t quite the boost it appeared. The truth is that NHS leaders across the country won’t see this billion as extra funding, but rather the removal of a freeze on cash they already have.
That’s because it matches a pot of cash that NHS trusts already earned last year, in return for stretching their efficiency to breaking point, on a subsequently broken promise that they could invest it.
Three years ago, as overspends by hard-pressed trusts threatened to blow a hole in the entire health department budget, the Treasury devised a scheme that involved encouraging the minority of trusts who were able to break even to cut back further still, in order to deliver a surplus. That surplus would then offset the far bigger and unavoidable deficit that would be racked up by the rest.
https://www.theguardian.com/commentisfree/2019/aug/05/boris-johnson-nhs-trusts
That’s because it matches a pot of cash that NHS trusts already earned last year, in return for stretching their efficiency to breaking point, on a subsequently broken promise that they could invest it.
Three years ago, as overspends by hard-pressed trusts threatened to blow a hole in the entire health department budget, the Treasury devised a scheme that involved encouraging the minority of trusts who were able to break even to cut back further still, in order to deliver a surplus. That surplus would then offset the far bigger and unavoidable deficit that would be racked up by the rest.
https://www.theguardian.com/commentisfree/2019/aug/05/boris-johnson-nhs-trusts