Warning over Britain becoming a ‘National Health State’
The Resolution Foundation has warned that the UK is turning into a ‘National Health State’, as spending on the NHS is set to account for half of all public spending by the end of the decade.
Commenting on the Chancellor’s recent Spending Review, the think tank said this latest review has continued a pattern of more spending on the NHS at the expense of other sectors.
It said that by the end of the decade, the health service will account for 49% of all day-to-day public service spending controlled by Westminster – up from a third (34%) in 2009-10.
This equates to a real per-person increasing in health funding of 36% over the period, while per-person funding for justice has fallen by 16%, work and pensions by 31%, and housing, communities and local government by 50%.
“The Spending Review was a huge deal as the Chancellor set out details of nearly £300 billion of extra spending over the second half of the Parliament. But as the dust settles a few clear winners have emerged,” said Ruth Curtice, Chief Executive of the Resolution Foundation.
“Health accounted for 90% of the extra public service spending, continuing a trend that is seeing the British state morph into a National Health State, with half of public service spending set to be on health by the end of the decade.”
Public spending is once again on the rise after declining steadily in the 2010’s, with those families on lower and middle incomes set to benefit the most from the changes announced in the Spending Review.
The Resolution founded noted that real day-to-day spending is now rising by 2.2% a year, following a 0.5% fall per year in the 2010s.
It also said that thanks to a weaker-than-expected economic situation, the tight headroom available to the Chancelllor, and an unfunded reversal of cuts to winter fuel payments, tax increases are likely to be announced in the Autumn Budget.
“The extra money in this Spending Review has already been accounted for in the last forecast. But a weaker economic outlook and the unfunded changes to winter fuel payments mean the Chancellor will likely need to look again at tax rises in the Autumn,” Curtice said.
