Spending watchdog: NHS finances in such a bad state that the whole service could collapse

Whitehall’s watchdog on spending has warned that the NHS finances are in such a bad state that it could break down if it doesn’t receive a huge cash injection.

The National Audit Office (NAO), which is a government agency, said that years of underfunding has left the NHS in England with so little money it can’t treat patients fast enough. And the rising tide of ill health only makes matters worse.

The NAO doesn’t specify how much additional funding is needed to bring the health service back up and make sure that trusts providing care are able to balance their books. A leading think-tank has recently estimated this figure to be £38bn per year more by the end of parliament.

The grim conclusion raises serious questions as to whether Keir’s Starmer government can meet its ambitious promises to save the NHS and again achieve key waiting times targets for surgery and A&E without spending significant more money.

In a report released on Tuesday, the watchdog stated that despite all efforts to prevent it, a growing number of NHS organisations have been overspending in recent years.

It warned, however, that the current funding trend will only make the situation worse. The NHS, it said, needs to be given a substantial budget boost in order to cope with an increasing number of sick people. The number of cases of cancer, heart diseases, dementia, and other killer illnesses is expected to increase in near future.

The NAO stated that “when we consider the way the health needs of our population are set to grow, we’re concerned that the NHS is working at its limits and that it may break before being able to again provide patients with timely care that meets accessibility standards.”

There is a larger question that policymakers need to answer regarding the growing mismatch in funding between the demand for NHS services, and the funding received by the NHS. Either the NHS needs to receive a lot more funding or it must avoid a large amount of future demand in healthcare. Otherwise, service levels may continue to be unacceptable or even worsen.

The NAO said that the lack of funding for the NHS in recent years was a result of strikes by different staff groups, inflation rampant, increased staff sickness, and the decrepit state of many NHS estates.

Matthew Taylor, chief executive of NHS Confederation, stated that health trust bosses are “enormous concerned” about the possibility that the service will exceed its budget this year by up to £3bn, as it was initially given too little funding.

“Despite their best attempts to balance the books in some areas, cuts to frontline clinical staff and services are now a fact.” If the new government does not act soon, these risks will only grow, and we will continue to see an increase in waiting lists, among other things.

The previous Conservative government was blamed by the current government for leaving NHS finances such a sorry state.

A spokesperson for the Department of Health and Social Care said, “The NHS is broken.” Not only did this government inherit the worst economic conditions since the Second World War, but it also inherited a NHS that is in deficit.

It will take some time to get the NHS back up and running.

The DHSC cited Ara Darzi’s urgent investigation of the state of NHS and the 10-year “radical reform” plan that would follow as proof of their commitment to improving service.