The health sector needs to keep open its doors and the UK is facing a shortfall of £2.7bn ($3.1bn) by 2021, according to the Institute of Public Policy (IPP).
Health care spending was £5,082 billion in the third quarter of 2020, with the figure projected to grow to £7.3bn in 2021, a rise of £1.5bn on the same period last year.
The IBP has forecast the NHS would be unable to cover its full operating costs in 2021.
Its Chief Executive, Mark Porter, said: “This is a staggering figure, the NHS faces an unsustainable financial shortfall of up to £1bn.”
We need a much more realistic forecast on what the NHS needs to do to keep itself afloat.
“That means spending the extra cash on the services it currently provides to the public rather than the ones it might be able to provide in the future.”
The IFP said there was “no clear-cut answer” as to how to tackle the financial crisis, but suggested the government had the “political will” to “cut red tape”.
Its report, Health, Economy and Society, said the UK had one of the highest healthcare costs in the EU and that the private sector was responsible for £1,966 billion of healthcare spending.
“However, its huge deficit is partly a result of the fact that the health sector is not being run in a way that delivers value for money. “
“The Government has no clear-cuts answer to the current financial crisis that is driving up healthcare costs.””
This report highlights that while the NHS can cover its operating costs, it is still a massive undertaking, and the Government has a responsibility to keep the doors open and keep people safe.”‘”
The Government has no clear-cuts answer to the current financial crisis that is driving up healthcare costs.”
This report highlights that while the NHS can cover its operating costs, it is still a massive undertaking, and the Government has a responsibility to keep the doors open and keep people safe.”‘
No clear-run answer’The report also noted the UK still had “large gaps” in its health spending.
Its chief executive, Mark Pomeroy, said it was “time to move away from the current policy framework and towards a more dynamic system that delivers for all”.
He said: “(The report) shows the Government is committed to creating an NHS that works for all its citizens.”
Health secretary, Jeremy Hunt, told the BBC’s Andrew Marr Show: “I’ve seen this report from the IFP and the NHS has got a clear-out plan.”
It’s clear the Government can’t just cut red tape, we’ve got to put the resources into our own health services, and I want to see those resources used to get people to hospital as quickly as possible.”‘
There’s no clear cut answer’What do you make of the report?
Should the government cut red-tape?
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