§ Ms PrimaroloTo ask the Secretary of State for Health how she plans to spend the extra money for the NHS announced in the Budget; and what percentage of it will be spent on administration.
§ Dr. MawhinneyMy right hon. Friend the Secretary of State, announced allocations to regional health authorities for 1994–95 on 7 December at columns198-200. Revenue allocations will rise by an average of 1.3 per cent. above inflation. In addition, health authorities have been given a 2.25 per cent. efficiency target, to ensure existing resources are used to improve patient services. Health authorities and trusts should reduce their administrative costs as far as they can, consistent with sound management of the £22 billion spent on the hospital and community health services. My right hon. Friend recently announced our proposals for streamlining the management structure of the national health service. This will result in further substantial savings in administrative costs so we can maximise the proportion of NHS expenditure devoted to direct patient care.
It is for individual health authorities to determine their own purchasing priorities within the framework of the NHS Management Executive's planning and priorities guidance for 1994–95, EL(93)54 published in June, copies of which are available in the Library.