HC Deb 29 April 1980 vol 983 cc1125-6
2. Mr. Dormand

asked the Secretary of State for Social Services what additional funds are being made available to the Northern regional health authority for 1980–81; and if he will make a statement.

The Minister for Health (Dr. Gerard Vaughan)

£ 118 million, of which £2½ million is real growth in revenue over last year.

Mr. Dormand

Is the Minister aware that the region has suffered a cut of £9.5 million in real terms? Is he further aware that the allowance of 14 per cent. for wage and price increases is totally inadequate and unrealistic, and that it will almost certainly mean that the present level of services cannot be maintained? Does not he accept that the fact that only 0.6 per cent. is being allowed for growth is another example of the Government's vendetta against the Northern region?

Dr. Vaughan

We set such importance on the cash limits and ceilings because we believe that 14 per cent. is a realistic figure. I accept that the Northern regional health authority is below target when compared with many other parts of the country. We have, therefore, set the increase in revenue for this year's allocations at 0.6 per cent., real growth.

Mr. Beith

By what means does the Minister hope to keep pay settlements within the 14 per cent. level on which the Budget must be based? Is he aware that such resources will permit only a limited amount of development in the Northern region?

Dr. Vaughan

We are satisfied that the planned level of service for 1980–81 can be realised within the cash limit of 14 per cent.—as announced by the Chief Secretary—provided that health authorities continue their efforts to achieve economies and savings.

Mr. Moyle

Is not the hon. Gentleman aware that a growth rate of 1 per cent. is needed if the Northern region is to stand still and cope with the increasing numbers of elderly people? Is not a growth rate of 0.6 per cent. an appalling performance, compared with the growth rates of 3 per cent. 4 per cent. and 2¾ per cent. which occurred during the last three years of the previous Labour Government?

Dr. Vaughan

The right hon. Gentleman ignores the considerable savings that are being made in the Health Service right across the country. A far more realistic view is now being taken. The 1980–81 cash limit reflects the full, planned volume, plus the ½ per cent. growth intended by our predecessors.