§ Mr. Ray Powellasked the Secretary of State for Social Services what effect his reduction of £125 million in health authorities' budgets by 31 March is having on the services for patients.
§ Mr. Patrick JenkinHealth authority cash limits have not been reduced.
This Government have increased cash limits by some £360 million to meet pay awards for which no provision had been made by the previous Administration. It has been for health authorities to decide how to cope with the 2½–3 per cent. squeeze on spending which is the combined effect of the decision of our predecessors not to fund the first £23 million of the excess cost of pay awards, the Budget decision on VAT, and the generally higher level of inflation due to energy costs and other factors.