§ 17. Mr. Beaumont-DarkTo ask the Secretary of State for Health what allowance for inflation has been made in allocations for 1990–91.
§ Mr. FreemanHealth authority allocations contain no specific provision for inflation. Authorities receive an overall cash allocation and are expected to manage their expenditure within that amount, together with resources released by cost improvement programmes and any additional funding—for example, towards the costs of review body pay awards. The 1990–91 allocations to regional health authorities represent an average cash increase of 9.6 per cent. over the previous year.
§ Mr. Beaumont-DarkBearing in mind the figures on inflation released by the Treasury, does my hon. Friend accept that it is difficult to believe that no allowance is made for inflation within such large sums? Indeed, we are talking about £24 billion to £28 billion. Although the sums that we give to the Health Service are large, does my hon. Friend agree that as only 3.8 per cent. was, I understand, allowed for the rate of inflation last year, another 4 per cent.—£800 million—would make a hugh difference to the hard-pressed West Midlands health authority and, indeed, every other health authority? Does my hon. Friend agree that inflation is of huge importance to the National Health Service?
§ Mr. FreemanMy hon. Friend is right, and the whole House awaits my right hon. Friend the Chancellor's Budget with great anticipation because keeping down inflation will help the Health Service most.