Medicopolitical Digest

NHS receives an extra pounds sterling 1.3bn from the budget

The chancellor of the exchequer announced an additional pounds sterling1.3bn for the NHS in last week's budget. This will mean that the total net expenditure in 1995-6 will rise to pounds sterling 32bn. The health secretary said that there would be a cash increase of 1.3% for hospital and community health services to pounds sterling 22.2bn. This sector is expected to increase efficiency by at least 3% in 1995, releasing the equivalent of pounds sterling 600m. Spending on the non-cash limited family health services will be increased by 2.5% in real terms to over pounds sterling 7bn.

About pounds sterling 60m of these savings will come from further streamlining health authorities, envisaged in the Health Authorities Bill. Mrs Bottomley expects that about pounds sterling 200m will be saved in health service management costs by 1997-8, including pounds sterling50m in the running costs of the Department of Health.

The chancellor also announced a 10p increase in the price of a packet of 20 cigarettes. The BMA has pointed out that this only keeps pace with inflation and was unlikely to dissuade children from taking up smoking. The association has repeated its call for a ban on tobacco advertising.