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Nhs (Expenditure)

Volume 79: debated on Friday 17 May 1985

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asked the Secretary of State for Social Services on what index of prices he calculates real increases in National Health Service expenditure.

We are firmly of the view that real increases in National Health Service expenditure as a whole should be measured in economic cost terms, that is, on the basis of general inflation, as measured by the GDP deflator. This approach, which is consistent with the real terms analyses in the public expenditure White Paper, measures changes in the real cost to the economy as a whole of expenditure on the National Health Service.