§ Dr. Roger Thomasasked the Secretary of State for Social Services to what extent the Government's intentions to expand the National Health Service by 1½ to 2½ percent. in real terms are being reduced by not allowing fully for inflation and other cost increases and by the enforcement of strict costs limits since May 1979.
§ Dr. VaughanIn cash terms, gross spending on the NHS in England has increased by some 55 per cent. between 1978–79 and 1980–81. In real terms, this represents an increase of about 2.4 per cent. as compared with the planned growth of 3.5 per cent. The difference is due mainly to the higher than expected cost in 1980–81 of the 1979 nurses and midwives pay award and to the fact that the price of goods and services purchased by health authorities rose faster than general inflation.
In 1981–82 the planned development of health services is being maintained in line with manifesto commitments and spending will be some five per cent. in real terms above the 1978–79 level. At least a further £25 million of planned growth will be found by savings from greater efficiency. The cash limit in 1981–82 is expected to be broadly adequate, subject to pay agreements yet to be reached for some staff groups.