§ Mr. HinchliffeTo ask the Secretary of State for Social Services what is the financial value of non-cash releasing cost improvements made in the National Health Service identified by the Department in response to the Social Services Committee; what proportion of the underfunding of the Health Service identified by the Social Services Committee these non-cash releasing cost improvements constitute; and if he will make a statement.
§ Mr. NewtonThe Government's formal response to the Committee's first two reports on the resourcing of the National Health Service was published on 22 June (Cm. 405).
The latest available information on movements in unit costs relates to 1986–87. Making no allowance for efficiency gains between 1986–87 and 1987–88 other than those attributable to cash releasing cost improvements, it can be shown that if unit costs had remained at their 1983–84 levels (apart from the effect of inflation) it would have cost nearly £900 million more to maintain 1987–88 service levels than was actually the case. About two thirds of this figure was attributable to cash releasing cost improvements.
However any estimate of efficiency gains other than cash-releasing cost improvements will necessarily be a less precise and certain figure than that for cash-releasing cost improvements, for which the savings are specifically monitored.