In one of the most anticipated Budgets in recent years, the Chancellor set out the Government’s plans for the economy.

Having painted itself into a fiscal corner with manifesto commitments on tax and promises not to increase borrowing, Keir Starmer’s Labour Party was under pressure.

Go big or go home

In response, Labour stressed not only the size of the challenge but the size of its response.

Indeed, overall we saw tax increases totalling £40bn balanced by far more investment than the pre-Budget media coverage suggested.

The NHS is perhaps the biggest recipient of the Chancellor’s focus on investment with £22bn, the largest increase in spending outside of the pandemic since 2010. It represents 4% real terms growth in revenue over two years.

There’s good news on capital too. ‘Phase 1 of the Spending Review’ will see NHS capital increase by £3.1 billion in 2025-26 compared to 2023-24 outturn, rising to £13.6 billion, a two-year average real terms growth rate of 10.9%.

You can read the 170 page document here (NHS detail starts on p51).

New money for old rope?

Included in the new capital investment is £1.57bn for new surgical hubs, scanners and radiotherapy machines briefed to the media ahead of the Budget.

This is welcome – although it’s not clear how a stretched NHS workforce might staff these facilities. It’s also worth remembering that the existing backlog of maintenance in the NHS is already £13.8bn.

While we await (and seek to influence) the 10-year plan, the sizeable investment announced today seeks to make good on Labour’s manifesto pledge to provide 40,000 more appointments every week.

DHC responds to bumper Budget

We welcome today’s Budget and believe it creates an opportunity for technological and digital solutions to play a key role as the health and care sectors respond to the many challenges they face.

Digital Health and Care Providers At The Ready

Health and care leaders and Government surely see that innovation, not more of the same, is what will drive up standards and drive down waiting lists.

That’s why our members already offer innovative funding solutions to the NHS – matching capital investment, offering cost-free installation and roll out… There are lots of excellent examples.

Working with the DHC is one way to make sure senior decision-makers understand your business’ unique offer.