HC Deb 31 March 1981 vol 2 cc139-41
8. Mr. Robert C. Brown

asked the Secretary of State for Social Services what recent representations he has received from regional health authorities regarding their financial allocations for 1981–82.

Mr. Patrick Jenkin

None, Sir.

Mr. Brown

Is the Secretary of State aware that of the 1.4 per cent. gross level increase in allocation at least half will be taken up by population change demands? With cash limits set for inflation at 11 per cent. and wage increases at 6 per cent., is that not wishful thinking, bearing in mind the effects of the Budget?

Mr. Jenkin

The proposed spending in 1981–82 on the National Health Service follows exactly the projections that were established by our predecessors in their last public expenditure White Paper—that is in real terms, making allowance for the rate of inflation. Although the average for the country as a whole of allocations to health authorities is about 1.6 per cent., the allocation to the Northern region is 2.3 per cent., representing a growth that is nearly five times higher than the growth, for instance, in the Thames region, which serves London and the Home Counties.

Mr. Robert Atkins

Do those allocations take account of the Secretary of State's recent proposal to charge people from abroad for the use of NHS services? If not, when does he intend to take note of that allocation?

Mr. Jenkin

I pay tribute to my hon. Friend for the pressure that he has maintained to ensure the introduction of that scheme. The money that will be earned in that way by the health authorities will be additional to the money that is allocated to them by the Government.

Mr. Dubs

Will the Secretary of State explain how he can make a sensible decision about the allocation of money to regional health authorities when, according to the answers that he has given to parliamentary questions, he does not know the precise financial circumstances of the area health authorities in the previous year?

Mr. Jenkin

As the hon. Gentleman knows, the allocations are made according to the formula evolved by the resource allocation working party, known as the RAWP formula. That formula has recently been revised and refined, and now provides a good basis on which to allocate money to different parts of the country on the basis of need. In the final analysis, of course, a judgment is required; it cannot be an automatic process. However, in forming that judgment, Ministers base their assessments on a wide range of factors, and the results are the figures that were published earlier this year.

Mr. Nicholas Winterton

I appreciate the detailed response that my right hon. Friend gave to the original question. Will he say what representations he has received from regional health authorities about the need to increase the number of consultants in the regions to provide a more adequate service for patients? What was his response to the regional health authorities that made such representations?

Mr. Jenkin

There are two sides to my hon. Friend's question. First, health authorities are never slow to say that they could spend more money than they receive. The other concerns the matter which the Select Committee—of which my hon. Friend is a distinguished member—is considering, namely, the balance between consultants and training grade doctors. We await with interest the findings of the Select Committee. I know that the NHS would like to have a better balance between the two grades of doctor.

Mr. Terry Davis

Will the Secretary of State clarify the figures? Is it not true that the increase of 1.6 per cent. includes the savings of £25 million which he imposed on health authorities? Is it not true that the £25 million is really £35 million at actual prices? Is not the Secretary of State counting minuses as pluses?

Mr. Jenkin

With respect, the 1.6 per cent. is after taking account of the savings, which were £25 million at survey prices, and are likely to be between £35 million and £36 million at outturn prices this year. Bearing in mind that that relates to a programme involving a total spending of more than £10,000 million, it is surely reasonable to expect the Health Service authorities to be able to find savings through higher efficiency that will amount to that small proportion of their total spending. That is what I seek, and that is what the regional health authorities have taken on board. I am quite confident that they will be able to achieve that saving.