§ Mr. Kirkwoodasked the Secretary of State for Social Services how the figure of £60 million as the extra finance to be made available to health authorities in 1986 was arrived at.
§ Mr. HayhoeThe addition to health authority cash limits for 1986–87 announced by my right hon. Friend the Prime Minister on 22 May at columns239–44 recognised that United Kingdom health authorities would need 299W additional resources if they were to meet the costs this year of the pay awards to review body staff without adverse effects on services to patients.
Forecast general inflation has fallen from 4.5 per cent. when public expenditure provision for 1986–87 was decided; the budget forecast was 3.75 per cent. This is equivalent to a saving for United Kingdom health authorities on their non-pay expenditure of some £25 million. The Government's assessment is that the £60 million addition to health authorities' initial cash limits, together with the fall in inflation, will enable health authorities to pay for the review body awards without adversly affecting services.