11
Accepted
NHSE confident in future pandemic funding, but highlights workforce capacity as main concern.
Conclusion
Resilience to shocks is a key element of financial sustainability. We asked how well the NHS would cope financially in the event of another pandemic. NHSE expressed confidence that in the event of another pandemic government would provide any additional funding the NHS needed, as it had done during the previous pandemic. NHSE acknowledged that this had only been possible in 2020 through the suspension of some normal financial rules. It said that, with similar financial arrangements in place, it would not be worried about money in the event of another pandemic and would be more concerned about the resilience and capacity of the NHS workforce to respond to the challenge.18
Government Response Summary
The government agrees with the recommendation, stating that new fiscal rules mean no further capital-to-revenue transfers will be used, and commits to a record £13.6 billion capital investment into health for 2025-26.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented: October 2024 Decisions to switch CDEL to RDEL have previously been made, in line with the principles set out in ‘Consolidated Budgeting Guidance’ and in agreement with HM Treasury, to meet financial pressures and protect frontline care. The fiscal rules set out by the Chancellor at the Autumn Budget 2024 mean that no further capital-to-revenue transfers will be used. The department and NHSE welcome the Chancellor’s decision not to allow further capital to revenue switches and recognise the importance of capital investment in the NHS in delivering an effective and productive healthcare system. In 2025-26, record levels of capital investment into health have been agreed, with a budget of £13.6 billion. Excluding years affected by the Covid-19 pandemic, this settlement represents the highest DHSC capital budget in real terms since 2010. The NHS has lived within its overall budget in every recent financial year. NHS systems must now agree credible operational and financial plans for the year and deliver on those plans, under rigorous scrutiny and oversight from Ministers, DHSC and NHS England.
Source
Committee
Public Accounts Committee
Inquiry
NHS financial sustainability
Report
5th Report - NHS financial sustainability
29 Jan 2025
HC 350
Addressee Bodies
HM Treasury
Timeline
Recommendation age
1.5 yrs
Report published
29 Jan 2025