§ Lord Stallardasked Her Majesty's Government:
What is the proportion of national income that is estimated will be spent on health by the end of 2003–04. [HL1791]
§ The Minister of State, Cabinet Office (Lord Falconer of Thoroton)As announced by my right honourable friend the Chancellor of the Exchequer on 21 March, provision has been made available for the UK which will allow the average real terms increase for the UK health service over the next four years to be 6.1 per cent. So health service spending will rise from last year's £45.1 billion and this year's £49.3 billion to; next year, £54.2 billion, the year after, £58.6 billion; then £63.5 billion; and then from April 2003, £68.7 billion.
As a result, on current forecasts, UK health spending as a proportion of GDP will increase to around 7.6 per cent by 2003–04. It is expected that spending within the private healthcare sector will remain at around 1 per cent of GDP and the overall rise to 7.6 per cent is almost solely accounted for by the real terms increase in NHS spending.
75WAThe 8 per cent EU average, as calculated by the OECD, is based on total healthcare spending. It is therefore directly comparable to the 7.6 per cent figure.