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Hewitt predicts 3% NHS growth for three years from 2008

BMJ 2007; 334 doi: https://doi.org/10.1136/bmj.39170.517940.DB (Published 05 April 2007) Cite this as: BMJ 2007;334:715
  1. Nicholas Timmins, public policy editor
  1. Financial Times

    Patricia Hewitt, the health secretary, has said she is confident that the NHS will get a minimum of 3% growth a year in real terms for the three years after 2008.

    And the Department of Health has finally agreed to unwind the “double whammy” of the “resource accounting and budgeting” rule—for NHS hospital trusts but not for primary care trusts.

    Under the rule, hospitals that overspend, by say £10m (€15m; $20m) on a £100m budget, have not only to pay that off but also lose the same amount from their next year's budget. In effect the hospital would have to make savings of £20m before the £10m is restored to the following year's budget.

    This plunged 28 NHS hospital trusts into a financial position from which they …

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