Autumn Budget 2024: Reactions to the Future of Healthcare
Chancellor of the Exchequer Rachel Reeves today (30 October) delivered the first Labour Budget in 14 years, and made several announcements on how the government will tackle healthcare.
The key points:
- A 10-year plan for the NHS in spring, targeting 2% productivity growth next year
- Day-to-day health budget to increase by £22.6bn, and £3.1bn increase in the capital investment budget
- A new levy on vapes, to be increased in line with tobacco
- Tobacco taxes to rise by 2% above retail prices index (RPI) measure of inflation for the rest of this parliament, and tax on hand-rolling tobacco will increase by 10%.
- Taxes on alcohol will rise in line with the RPI, and a cut in draught duty by 1.7% – a penny off a pint in the pub.
Health Industry Leaders asked the healthcare sector for their initial reactions.
Tom Whicher, CEO and Founder of DrDoctor
“Let’s turn this ship around! While a single Budget will not fix the NHS overnight, the strength of commitment shown by Rachel Reeves today is a refreshing example of promises being kept.
“As pressure on our health service increases, finding the funds to keep up with demand is a complex and difficult task. But with tax rises making it possible for the government to earmark £3.1 billion for capital investment in the NHS and an increase of £22.6 billion for day-to-day spending on healthcare, a lot of good will be done.
“Investing in the infrastructure to make two million extra appointments available is a great way to reduce the waitlist but, with stretched bank balances front of mind, there is a more efficient way.
“Our insights from patients who have missed hospital appointments shows that nearly a third would find it easier to attend their appointment if they could rearrange it online or move it to a more convenient time – that’s a really quick fix to shrinking the waitlist by reducing Did Not Attends (DNAs).
“I welcome the approach to the NHS in this Budget – it’s bold but realistic. But I’d also like to see more evidence of us working smarter, not just harder, to deliver a modern NHS that does justice to patients and the dedicated professionals working within it.”
Richard Keyse, CEO and co-founder of British health-tech company Andi
“We welcome the Chancellor’s decision to provide a £1.3 billion real term funding increase to local government, with £600M set aside for social care. Local authorities must ring-fence part of this money for adult social care to meet the looming two-year deadline to switch telecare from analogue to digital.
“Investing in these new smart, preventative digital solutions will allow the elderly and vulnerable to stay in their own homes for longer, increasing their happiness and wellbeing as well as reducing costs to the taxpayer by millions. Without this technology, our care sector will be trapped using 1980s technology for at least another five years.”
Nick Sanderson, CEO of Audley Group
“It would be dismissive of the new government to write a ‘prescription’ for the NHS next year and set a 10 year plan and not consider where people live. Rachel Reeves has promised a focus on community and prevention.
“This is welcome and might finally mark the moment that policymakers acknowledge how intrinsically linked housing and care are – and that is especially true for our growing older population.
“Increasing retirement living options that truly meet the needs of people as they get older, promote community living and encourage people to live well and independent lives, would lift pressure off care services and indeed the NHS – at both a local and national level. The government must acknowledge this, and do so quickly.”
