HC Deb 24 February 1983 vol 37 cc513-4W
Lord James Douglas-Hamilton

asked the Secretary of State for Social Services what financial provision he is making for the joint financing scheme for England in 1983–84, 1984–85 and 1985–86; and if he will also express these figures on a per capita basis.

Mr. Kenneth Clarke

The Government have provided £96 million for jointly financed schemes in 1983–84. This

(£ million cash)
Increases 1983–84 of
1978–79 1979–80 1980–81 1981–82 1982–83 1983–84 1978–79
(a) Expenditure—
(i) wages, salaries and remuneration* 3,876 4,714 6,109 6,836 7,340 7,731 3,855
(ii) all other items 2,579 2,998 3,808 4,358 4,811 5156 2,577
(iii) total 6,455 7,712 9,917 11,194 12,151 12,887 6,432
Per cent. Per cent. Per cent. Per cent. Per cent. Per cent.
(b) Increase in cash at (iii) 19.5 28.6 12.9 8.5 6.1 99.6
(c) Pay and price increases (including NHS relative price effect which causes NHS prices to increase faster than the RPI) 19.6 27.0 9.1 7.0 5.2 86.5
(d) Growth in resources -0.1 1.2 3.5 1.4 0.8 7.0
(e) Health authorities' specificially identified efficiency savings — — 0.1 0.3 0.3 0.7
(f) Growth in services -0.1 1.2 3.6 1.7 1.2 7.7
No precise estimates have been made of the implications of medical advances for hospital and community health services expenditure but the Department's projections have normally included an allowance of 0.5 per cent. a year on this account. Demographic changes are estimated to increase demand for hospital and community health services by 4 per cent. over the period. Growth in hospital and community health services is estimated to be about 6½ per cent.
The pay and price increases in line (c) are those which are known to have affected NHS costs up to 1981–82 together with allowances for estimated increases in costs in 1982–83 and 1983–84. The figure for actual and estimated general inflation as measured by the retail prices index over the period is lower, at some 70 per cent. The estimated increase in the economic cost of the NHS growth in line (d) is on this basis about 17½ per cent.
* Figures in line (a) (i) include the net remuneration of independent contractors working in the family practitioner services and most of their labour costs.

Note: Figures are rounded individually and therefore may not sum to the totals.

represents national average per capita expenditure of about £2. Published figures estimating provision for 1984–35 and 1985–86 are set at the same level in real terms, but the actual provision will be determined in the review of public expenditure for those years.