Public Expenditure on Health and Personal Social Services 2009 - Health Committee Contents

Memorandum from the Department of Health containing replies to a written questionnaire from the Health Committee[1]

PUBLIC EXPENDITURE ON HEALTH AND PERSONAL SOCIAL SERVICES 2009

1.  GENERAL EXPENDITURE

1.1.1  What has net NHS expenditure and annual change in net NHS expenditure been (a) at current prices and (b) in real terms in each year for which data are available (on outturn or plan basis) from 1993-94? (Q1)

Answer

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

Table 1a

NHS NET EXPENDITURE, ENGLAND

				£ billion
Year		Net NHS expenditure (4)	% increase	% real terms increase (7)
Cash (1)
1993-94	Outturn	28.942	3.5	0.7
1994-95	Outturn	30.590	5.7	4.1
1995-96	Outturn	31.985	4.6	1.6
1996-97	Outturn	32.997	3.2	-0.5
1997-98	Outturn	34.664	5.1	2.4
1998-99	Outturn	36.608	5.6	3.4
1999-2000	Outturn	39.881	8.9	6.8
Resource Budgeting Stage 1 (2)
1999-2000	Outturn	40.201	—	—
2000-01	Outturn	43.932	9.3	7.9
2001-02	Outturn	49.021	11.6	9.1
2002-03	Outturn	54.042	10.2	6.8
Resource Budgeting Stage 2 (3) (5)
2002-03	Outturn	57.049	—	—
2003-04 (9)	Outturn	64.173	12.5	9.4
2004-05	Outturn	69.051	7.6	4.7
2005-06	Outturn	75.822	9.8	7.8
2006-07	Outturn	80.561	6.3	3.2
2007-08	Outturn	89.261	10.8	7.8
2008-09	Estimated outturn	94.522	5.9	3.6
2009-10	Plan	102.662	8.6	7.5
2010-11	Plan	105.824	3.1	1.6
Source:
Financial Planning and Allocations, DH
Footnotes:
1.  Expenditure pre 1999-2000 is on a cash basis.
2.  Expenditure figures from 1999-2000 to 2002-03 are on a Stage 1 Resource Budgeting basis.
3.  Expenditure figures from 2003-04 to 2010-11 are on a Stage 2 Resource Budgeting basis.
4.  Figures are not consistent over the period (1993-94 to 2010-11), therefore it is difficult to make comparisons across different periods.
5.  Stage 2 figures include a technical adjustment for trust depreciation.
6.  Expenditure excludes NHS annually managed expenditure.
7.  GDP deflator 30 June 2009.
8.  Total expenditure is calculated as the sum of revenue and capital expenditure net of non-trust depreciation and impairments. This is in line with HM Treasury guidance.
9.  NHS expenditure figures for 2002-03 to 2007-08 have been adjusted for classification changes by HM Treasury. 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 6.6% not 9.4%.

Table 1b

NHS NET EXPENDITURE (ENGLAND), 2008-09 PRICES

			£ billion
Year		Net NHS expenditure (4)	Net NHS expenditure 2008-09 prices
Cash (1)
1993-94	Outturn	28.942	41.705
1994-95	Outturn	30.590	43.403
1995-96	Outturn	31.985	44.117
1996-97	Outturn	32.997	43.875
1997-98	Outturn	34.664	44.917
1998-99	Outturn	36.608	46.458
1999-2000	Outturn	39.881	49.633
Resource Budgeting Stage 1 (2)
1999-2000	Outturn	40.201	50.032
2000-01	Outturn	43.932	53.966
2001-02	Outturn	49.021	58.902
2002-03	Outturn	54.042	62.906
Resource Budgeting Stage 2 (3) (5)
2002-03	Outturn	57.049	66.407
2003-04	Outturn	64.173	72.651
2004-05	Outturn	69.051	76.059
2005-06	Outturn	75.822	81.987
2006-07	Outturn	80.561	84.609
2007-08	Outturn	89.261	91.215
2008-09	Estimated outturn	94.522	94.522
2009-10	Plan	102.662	101.646
2010-11	Plan	105.824	103.228
Source:
Financial Planning and Allocations, DH
Footnotes:
1.  Expenditure pre 1999-2000 is on a cash basis.
2.  Expenditure figures from 1999-2000 to 2002-03 are on a Stage 1 Resource Budgeting basis.
3.  Expenditure figures from 2003-04 to 2010-11 are on a Stage 2 Resource Budgeting basis.
4.  Figures are not consistent over the period (1993-94 to 2010-11), therefore it is difficult to make comparisons across different periods.
5.  Figures from 2003-04 include a technical adjustment for trust depreciation.
6.  Expenditure excludes NHS annually managed expenditure (NHS AME).
7.  GDP deflator 30 June 2009.
8.  Total expenditure is calculated as the sum of revenue and capital expenditure net of non-trust depreciation and impairments. This is in line with HM Treasury guidance.

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1   Responses to questions 118 to 124 have been supplied by Monitor, the independent regulator of NHS foundations trusts. Back

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Prepared 20 January 2010