HC Deb 24 June 1986 vol 100 cc153-4W
Mr. Pavitt

asked the Secretary of State for Social Services what was the growth in real terms in the amount of resources devoted to the National Health Service and available for patient care in 1984–85 in absolute and percentage terms, taking account of demographic factors and the impact on costs of technological advances.

Mr. Hayhoe

Total expenditure on the National Health Service in 1984–85 increased by 2.8 per cent. (£360 million) in real terms of which 1.4 per cent. (£180 million) was spent on pay and price increases, leaving the remaining 1.4 per cent. available for services. The table shows the increase in resources from higher spending and cost improvement available to the Hospital and Community Health Service (HCHS) in 1984–85 and estimated demographic pressure. It is not possible accurately to measure the effect of technological change on costs. It is not possible to provide similar data for the National Health Service as a whole.

These figures do not fully reflect the significant increases in patient care which took place. In 1984–85 health authorities achieved cost improvement programmes of over £100 million (equivalent to 1.1 per cent. of revenue resources). In 1984 the number of in-patient cases rose by 159,000 (2.6 per cent.), day cases by 90,000 (11 per cent.) and out-patient and accident and emergency attendances by 690,000 (1.4 per cent.). Overall, services to patients increased by 3 per cent. more than sufficient to meet demographic pressure and to take advantage of the opportunities offered by medical progress.

£ million per cent.
Real Growth in expenditure* 121 1.4
Cost improvement (Cash releasing) 105 1.1
Total Resources
of which 226 2.5
Pay and price† 130 1.5
Services 96 1.0
Demographic Pressure 52 0.6
* As measured against the gross domestic product deflator.
† Represents the increase in 'HCHS pay and prices compared with general inflation.

Mr. Pavitt

asked the Secretary of State for Social Services what proportion of gross national product was devoted to expenditure on the National Health Service in each year since 1981; what equivalent information he has about other Organisation for Economic Co-operation and Development countries; and to what factors he attributes any difference between the figures for the United Kingdom and the average for the Organisation for Economic Cooperation and Development.

Mr. Hayhoe

I shall let the hon. Member have a reply as soon as possible.