THE NHS will face an unprecedented financial crisis in 2015-16,, just after the general election, the King’s Fund charity warned yesterday.
In its quarterly monitoring report, the health policy think-tank said that two-thirds of NHS trust finance directors were concerned that their hospital would go into deficit in 2015-16.
Another 20 per cent said they were uncertain about the future, leaving a small minority confident that they could balance the books. The NHS in England has in effect had no real rise in spending since the Coalition Government came to power in 2010, and 65 trusts are already in deficit.
NHS finance directors are concerned about the implementation of the £3.8bn Better Care Fund, which will see an additional £1.9bn transferred from the NHS to support joint working between health and social care from April 2015.
The King’s Fund warned that unless politicians come up with ‘radical solutions to the crisis’ in the coming months, the new round of cuts will push most hospital trusts into serious deficit.
Responding to the King’s Fund’s alarming report, Dr Peter Carter, chief executive and general secretary of the Royal College of Nursing, said: ‘The NHS is currently managing to deliver for patients only by overstretching its staff and pushing the limits of its budget.
‘This is not sustainable and the NHS must listen to the concerns of its clinical staff as well as its finance directors.’
Liz Kendall MP, shadow minister for care and older people, said the King’s Fund’s warning of a looming ‘financial crunch’ confirms Labour’s fears that the NHS’s finances have deteriorated badly on the coalition government’s watch.
She said: ‘NHS trust deficits are growing and there are now twice as many foundation trusts in the red compared to this time last year.’ However, Labour admit that if elected they will continue NHS cuts and privatisation.
The King’s Fund adds: ‘Pressures on hospital waiting lists are growing, with more than 360,000 additional people waiting for treatment in January 2014, compared to the same month last year.’
Key findings from this quarter’s analysis of performance data include:
• 4.8 per cent of patients spent four or more hours in A&E during the quarter to the end of March 2014
• 9.6 per cent of patients waited longer than 18 weeks for inpatient treatment in January, the highest proportion since June 2011
Richard Murray, Director of Policy at The King’s Fund, warned: ‘The NHS will face a financial crisis in 2015/16, if not before. It is now certain that the next government will need to find more funding for the NHS or accept significant cuts to services.’
The King’s Fund said: ‘NHS England has estimated that hospitals will need to reduce emergency admissions by 15% – a prospect rated as “very unlikely” by nearly 70% of hospital finance directors.’
Bill Rogers, secretary of the North East London Council of Action, which is fighting to re-open the A&E at Chase Farm Hospital in Enfield told News Line: ‘These cuts are part of a general plan that the government has got to smash the NHS.
‘They try to make out that there are economic problems; that is not the case. This is a political attack on the NHS. The TUC must call a general strike to bring this government down.
‘To do that we need to build a new revolutionary leadership in the trade unions. That’s why I urge all workers, youth and trade unionists to attend the All Trade Unions Alliance Conference on May 10th to build that leadership.’
