Has the NHS had its budget lowered by ₤ 30 billion?

“The Chancellor buried a £30 billion cut to day to day spending in the Department of Health and Social Care”

The Labour Party, 4 March 2021.

The Labour Party says that the government’s recent budget contained “a £30 billion cut to day to day spending in the Department of Health and Social Care”, which Labour says will reduce frontline healthcare services.

This claim was repeated by the Daily Mail, Morning Star and the New European.

It is correct that the day-to-day Department of Health and Social Care (DHSC) budget has been reduced by £30 billion, however this reflects the withdrawal of additional funding for the Covid-19 response in 2020.

Funding for the day-to-day running of the NHS, besides Covid, actually rose in the budget. 

Where is the money going?

The budget shows government departmental spending in terms of resource and capital spending. Broadly speaking, resource spending relates to running costs or day-to-day costs while capital relates to investment (e.g. new hospitals).

In 2020/21 the resource funding for Health and Social Care in England was £140.3 billion, of which £129.7 billion was provided to NHS England. In 2021/22, the resource budget will increase to £147.1 billion, of which NHS England will receive £136.1 billion.

However, Covid-19 specific resource funding will decrease from £58.9 billion to £22 billion. Of this, NHS England will receive £3 billion in 2021/22, down from £18 billion in the most recent year.

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