§ Mr. Meacherasked the Secretary of State for Social Services (1) if he will set out, for each year since 1960, the level of (i) Exchequer supplement, (ii) national insurance contributions, (iii) National Health Service charges levied and (iv) other revenue sources contributing each year to the total National Health Service budget; and what percentage of total revenue each year came from each of these sources;
(2) what has been the level of National Health Service expenditure each year since 1960; what percentage change each year this represents in real terms as measured by the retail price index; what percentage change each year this represents in terms of National Health Service pay and prices; and what percentage change each year this 119W represents in terms of National Health Service pay and prices, taking into account annual rises in demographic demand and in the costs of medical technology.
§ Mr. Kenneth Clarke[pursuant to his reply, 3 May 1985, c. 272]: The table sets out total gross expenditure (current and capital) on the National Health Service in England for each year since 1971–72. Comparable expenditure figures are not available for earlier years. Percentage changes in real terms are measured by the gross domestic product deflator. As the hon. Member has specifically requested figures deflated by the retail price index, and by National Health Service pay and prices these are also given but I do not accept that these figures are a sensible measure of "expenditure in real terms".
In the period since the late 1970s it has usually been estimated that on average Hospital and Community Health Services require each year nearly one per cent. more of real resources to deal with demographic pressures, and that an additional ½ per cent. is required each year because of medical advance. These percentages should be applied
England gross expen-diture(£ million cash) Percentage increase in real terms(GDP deflator) Percentage increase deflated by the Retail Price Index Percentage increase deflated by move ments in NHS pay and prices 1971 2,000 +3.6 +3.6 +3.6 1972–73 2,281 +5.6 +6.5 +5.1 1973–74 2,592 +5.9 +2.8 +3.5 1974–75 3,426 +10.6 +12.2 +1.2 1975–76 4,511 +5.0 +5.7 +2.6 1976–77 5,149 +0.7 -1.0 +1.1 1977–78 5,689 -2.8 -3.0 +0.9 1978–79 6,455 +2.5 +4.7 +2.3 1979–80 7,712 +2.3 +3.2 -0.1 1980–81 9,917 +8.4 +10.6 +1.2 1981–82 11,158 +2.3 +0.9 +3.3 1982–83 12,134 +1.9 +1.6 +1.2 1983–84 12,917 +2.0 +1.7 +1.4 1984–85 13,847 +2.6 +2.1 +1.1