Select Committee on Health Memoranda


Memorandum received from the Department of Health

1.  EXPENDITURE

1.1  Total Expenditure

  1.1.1  What has net NHS expenditure and annual change in net NHS expenditure been (a) in current prices (b) in real terms and (c) adjusted for NHS-specific inflation in each year and planned year since 1993-94? What has net NHS expenditure been as a proportion of GDP in each year since 1993-94? (Q1)

  ANSWER

  1.  The information requested is given in Table 1a and Table 1b.

  2.  Between 1993-94 and 2003-04, the latest year for which NHS specific indices are available, net NHS expenditure has increased by:

  103.0% in cash terms;

  58.3% in real terms adjusted by the GDP deflator; and,

  37.6% after accounting for NHS specific inflation.

  3.  Between 2003-04 and 2007-08, net NHS resources increase by:

  43.6% in cash terms; and,

  30.2% in real terms adjusted by the GDP deflator.

  4.  GDP is provided by HM Treasury and is only available for the UK as a whole, so we cannot provide NHS Expenditure in England as a proportion of GDP.

Table 1a

CHANGE IN NET NHS EXPENDITURE 1993-94 TO 2007-08



Net NHS expenditure(3)
£ millions
Percentage change
%
Real terms change(1)
%
Change after adjusting for NHS specific inflation(2)
%

Cash
1993-94
Outturn
28.942
1994-95
Outturn
30.590
5.7
4.1
3.0
1995-96
Outturn
31.985
4.6
1.5
0.8
1996-97
Outturn
32.997
3.2
-0.2
0.3
1997-98
Outturn
34.664
5.1
2.1
2.9
1998-99
Outturn
36.608
5.6
3.0
1.6
1999-2000
Outturn
39.881
8.9
6.8
4.1
  
Stage 1 Resource Basis
1999-2000
Outturn
40.201
2000-01
Outturn
43.932
9.3
7.8
5.0
2001-02
Outturn
49.021
11.6
9.0
6.5
2002-03
Outturn
54.042
10.2
6.9
6.5
  
Stage 2 Resource Basis
2002-03
Outturn
55.724
2003-04(4)
Outturn
64.181
15.2
11.9
10.0
2004-05
Outturn
69.306
8.0
5.1
2005-06
Estimated outturn
77.847
12.3
10.0
2006-07
Plan
84.387
8.4
5.8
2007-08
Plan
92.173
9.2
6.4

  Footnotes:

1.  Change after adjusting for the GDP deflator (30 June 2006).

2.  NHS specific inflation index is available of the period up to 2003-04.

3.  NHS Expenditure Figures for the period 1999-2000 to 2007-08 are consistent with Table 3.

4.  NHS expenditure figures for 2002-03 to 2007-08 have been adjusted for classification changes by HMT. As a result, growth in NHS expenditure in 2003-04 is distorted. Once these are adjusted for, real terms growth in NHS expenditure in 2003-04 is 7.3%.

Table 1b

UK HEALTH SPENDING AS A PERCENTAGE OF GDP 1997-98 TO 2007-08


UK Public Spending
(£bn)
Public
Spending as a % of
GDP
Private
Spending as a % of
GDP
Total Health Spending as a % of
GDP

Cash
1997-98
Outturn
44.7
5.4%
1.3%
6.7%
Accruals
1998-99
Outturn
47.1
5.4
1.4
6.8
1999-2000
Outturn
49.6
5.4
1.4
6.8
2000-01
Outturn
54.3
5.6
1.4
7.0
2001-02
Outturn
59.9
6.0
1.3
7.3
2002-03
Outturn
66.3
6.3
1.4
7.6
2003-04
Outturn
74.9
6.7
1.4
8.1
2004-05
Outturn
82.6
7.0
1.4
8.4
2005-06
estimated outturn88.6
7.3
1.4
8.7
2006-07
plan
97.4
7.4
1.4
8.9
2007-08
plan
107.2
7.8
1.4
9.2

  Source: HM Treasury

  Footnotes:

1.  For any further informaton regarding UK Health Expenditure, please contact the HM Treasury General Enquiry office on 0207 270 4558 or email at public.enquiries@hm-treasury.gov.uk

2.  This is a statistic supplied by HM Treasury. It is not appropriate to construct a statistic showing NHS Expenditure as a proportion of GDP as the numerator is on an England basis, and the denominator is on a UK basis.

  1.1.2  What has net NHS expenditure, net NHS expenditure per head and net NHS expenditure as a proportion of GDP been in (a) England (b) Wales (c) Scotland (d) Northern Ireland and (e) the United Kingdom in each year since 1997-98? (Q2)

  ANSWER

  1.  Table 2 shows Net NHS Expenditure in England, Scotland and Northern Ireland for 2005-06. Wales' expenditure is not currently available for 2005-06, so 2004-05 data has been used. The table also shows Net NHS expenditure per head of population for each of these countries. The information based on UK expenditure and GDP has not been included as this is calculated, and provided by HM Treasury.


 
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