Health Service Finance

Mr. Robin Cook

To ask the Secretary of State for Health if he will publish annex B of Cm 1913 adjusted for input unit costs.

[holding answer 3 March 1992]: The information requested for the hospital and community health services, family health services and the health service as a whole for the years 1986–87 to 1990–91 is given in the table. Information is not available in this form for other parts of the programme or for later years.

This information measures changes in total inputs at constant factor cost but ignores the continuing success of the national health service in increasing the efficiency with which it uses resources. Therefore, in order to give a complete picture, figures adjusted by the gross domestic product deflator have also been included.

It has not been possible to adjust these figures for certain national health service review related changes. Figures for 1991–92 onwards are therefore not directly comparable with those for earlier years. The main points are:

Expenditure figures as they appear in Annex B of Cm 1913 adjusted for changes in input unit costs and by the GDP deflator (All at 1990–91 prices)
£ million
NHS hospital, community health, family health (cash limited) and related services	1986–87	1987–88	1988–89	1989–90	1990–91	1991–92	1992–93
Current expenditure
Adjusted for change in input unit cost
gross	18,790	19,112	19,202	19,241	20,073	(a)	(a)
net	18,273	18,602	18,687	18,710	19,513	(a)	(a)
Adjusted by the GDP deflator
gross	17,787	18,618	19,285	19,434	20,073	21,582	22,748
net	17,298	18,120	18,767	18,898	19,513	21,050	22,256
Capital expenditure
Adjusted for change in input unit cost
gross	1,703	1,697	1,731	1,930	1,864	(a)	(a)
net	1,491	1,420	1,365	1,638	1,661	(a)	(a)
Adjusted by the GDP deflator
gross	1,642	1,631	1,643	1,878	1,864	1,911	1,731
net	1,437	1,364	1,295	1,594	1,661	1,698	1,538
NHS family health services (non cash limited)
Current expenditure
Adjusted for change in input unit cost
gross	6,097	6,306	6,491	6,460	6,275	(a)	(a)
net	5,454	5,658	5,802	5,704	5,574	(a)	(a)
Adjusted by the GDP deflator
gross	5,616	5,895	6,222	6,164	6,275	6,263	6,535
net	5,024	5,289	5,561	5,442	5,574	5,552	5,803
Total health services
Current expenditure
Adjusted for change in input cost
gross	25,776	26,300	26,536	26,601	27,247	(a)	(a)
net	24,600	25,130	25,325	25,310	25,960	(a)	(a)
Adjusted by the GDP deflator
gross	24,221	25,337	26,309	26,450	27,247	28,851	30,329
net	23,117	24,209	25,108	25,166	25,960	27,575	29,069
Capital expenditure
Adjusted for change in input unit cost
gross	1,774	1,744	1,786	1,981	1,933	(a)	(a)
net	1,561	1,463	1,394	1,688	1,729	(a)	(a)
Adjusted by the GDP deflator
gross	1,710	1,676	1,695	1,928	1,933	2,080	1,910
net	1,505	1,407	1,323	1,642	1,729	1,801	1,717
Total expenditure
Adjusted for change in input cost
gross	27,572	28,069	28,350	28,592	29,180	(a)	(a)
net	26,179	26,616	26,758	27,011	27,689	(a)	(a)
Adjusted by the GDP deflator
gross	25,931	27,015	28,003	28,377	29,180	30,932	32,239
net	24,622	25,616	26,431	26,809	27,689	29,376	30,786

(a) Estimates are not made for changes in input unit cost until the financial year has ended.

(i) Sums provided for trust debt remuneration are included in hospital and community health services current in 1991–92 and 1992–93;

(ii) Trusts' capital spending financed via health authorities' payments for services is included in hospital and community health services current, for 1991–92 and 1992–93;

(iii) General practitioner fundholders' expenditure on drugs is included in hospital and community health services current in 1991–92 only.

Volume 205: debated on Friday 13 March 1992