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NHS: Expenditure

Volume 496: debated on Wednesday 9 September 2009

To ask the Secretary of State for Health what the cost to the Exchequer of the NHS has been in (a) cash and (b) real terms in each year since 1990; and what proportion of (i) gross domestic product and (ii) public expenditure such expenditure represented in each such year. (290726)

Table 1 shows total net national health service expenditure in England in (a) cash and (b) real terms in each year since 1990.

Table 2 shows United Kingdom health expenditure as a proportion of (i) gross domestic product (GDP) and (ii) total managed expenditure.

Table 1: NHS Total Expenditure: England—1990-91 to 2010-11

£ Billion

Net NHS expenditure nominal4

Net NHS expenditure real (2008-09 prices)4

Cash1

1990-91

Outturn

22.3

36.1

1991-92

Outturn

25.4

38.7

1992-93

Outturn

28.0

41.4

1993-94

Outturn

28.9

41.7

1994-95

Outturn

30.6

43.4

1995-96

Outturn

32.0

44.1

1996-97

Outturn

33.0

43.9

1997-98

Outturn

34.7

44.9

1998-99

Outturn

36.6

46.5

1999-2000

Outturn

39.9

49.6

Resource budgeting

Stage 12

1999-2000

Outturn

40.2

50.0

2000-01

Outturn

43.9

54.0

2001-02

Outturn

49.0

58.9

2002-03

Outturn

54.0

62.9

Resource budgeting

Stage 23,5

2003-04

Outturn

64.2

72.7

2004-05

Outturn

69.1

76.1

2005-06

Outturn

75.8

82.0

2006-07

Outturn

80.6

84.6

2007-08

Outturn estimated

89.3

91.2

2008-09

Outturn

94.5

94.5

2009-10

Plan

102.7

101.6

2010-11

Plan

105.8

103.2

Notes:

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 (1990-91 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 (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 HMT guidance.

Table 2: UK health expenditure as a proportion of (i) gross domestic product, and (ii) total managed expenditure

Percentage

UK public spending on health as a percentage of GDP

UK public spending on health as a percentage of total managed expenditure

Cash

1993-94

Outturn

5.5

12.8

1994-95

Outturn

5.6

13.2

1995-96

Outturn

5.6

13.3

1996-97

Outturn

5.4

13.6

1997-98

Outturn

5.3

13.8

Accruals

1998-99

Outturn

5.3

14.2

1999-2000

Outturn

5.2

14.4

2000-01

Outturn

5.5

14.9

2001-02

Outturn

5.8

15.4

2002-03

Outturn

6.1

15.7

2003-04

Outturn

6.5

16.5

2004-05

Outturn

6.8

16.8

2005-06

Outturn

7.1

17.1

2006-07

Outturn

7.0

17.2

2007-08

Outturn

7.2

17.5

2008-09

Estimated outturn

7.7

17.8

Source:

Calculated percentages use information on:

- Health Public Spending—Table 4.2/Table 4.4 HM Treasury PESA 2009

- ONS data for money GDP (not seasonally adjusted, BKTL)

- Total Managed Expenditure: Budget 2009 Table C17

GDP and public expenditure are reported on a UK basis by HM Treasury. In order to avoid a misleading calculation, UK based figures for health expenditure have been used in the calculation. The same method is applied in response to similar questions posed as part of the Health Select Committee’s Public Expenditure Inquiry. Please note easily accessible health figures available on this basis only back to 1993-94.