Pressure group urges health leaders to 'focus on sluggish productivity'

TaxPayers’ Alliance is calling for health leaders to focus on ‘boosting sluggish productivity’ because there is ‘a risk’ that the NHS will be equal to a quarter of the whole UK economy by the end of this century.

Pressure group urges health leaders to 'focus on sluggish productivity'

The pressure group for lower taxes, government transparency and an end to wasteful government spending says that at the long-term average rate of growth in NHS spending and the forecast rate of GDP growth, NHS spending is estimated to reach £2.6tn in 2099-2100, which would be 24.6% of UK GDP, at £10.5tn.

NHS spending in 2024-25 was £187bn, equal to 7% of GDP, with spending set to grow by 3% per year during this parliament. As a result of this, NHS spending will make up half of all day-to-day government spending by the end of the parliament, according to the Resolution Foundation.

However, this rate of spending growth is below both the long-term average rate of 3.6%, and the rate of real terms funding growth called for by the BMA in their submission to the autumn budget, when they called for real terms funding growth of 6.7% for the DHSC as a whole. If NHS spending returned to the long-term average rate after this Parliament, and assuming the average rate of growth forecast by the OBR up until 2073-74 remains consistent, the NHS will be equal to a quarter of UK GDP in 2099-2100.

If the growth rate was increased to 3.8% - the average rate of growth since the 1980s - as called for by some campaigners, the NHS would be equal to a quarter of GDP seven years earlier, in 2092-93. According to the Health Foundation, this rate of growth is necessary to achieve ‘sustained improvement'.

Shimeon Lee, policy analyst of the TaxPayers' Alliance, said: ‘Brits often joke that the UK is a health service with a country attached, but it may not be long until this joke turns into a reality.

‘If NHS funding increases return to the long-term trend, as many are calling for, it will be equal to a shocking quarter of the economy by the end of this century.

‘As well as demonstrating the need for spending restraint and productivity increases, this is also a reminder of the urgent need to boost growth.'

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