NHS: Finance

To ask the Secretary of State for Health what estimate his Department made of expenditure from the public purse on the NHS in England in respect of each of the last 10 years expressed (a) in cash terms, (b) as a percentage of gross domestic production and (c) as a percentage of all public expenditure. (291316)

Table 1 shows total net national health service expenditure in England in cash terms in each year since 1998.

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—1998-99 to 2010-11*
		Net NHS expenditure nominal¹ (£ billion)
Cash²
1998-99	Outturn	36.6
1999-2000	Outturn	39.9

Resource Budgeting Stage 1³
1999-2000	Outturn	40.2
2000-01	Outturn	43.9
2001-02	Outturn	49.0
2002-03	Outturn	54.0

Resource Budgeting Stage 2^4,5
2003-04	Outturn	64.2
2004-05	Outturn	69.1
2005-06	Outturn	75.8
2006-07	Outturn	80.6
2007-08	Outturn	89.3
2008-09	Estimated outturn	94.5
2009-10	Plan	102.7
2010-11	Plan	105.8
¹.Figures are not consistent over the period (1998-99 to 2010-11), therefore it is difficult to make comparisons across different periods. ².Expenditure pre 1999-2000 is on a cash basis. ³.Expenditure figures from 1999-2000 to 2002-03 are on a Stage 1 Resource Budgeting basis. ⁴.Expenditure figures from 2003-04 to 2010-11 are on a Stage 2 Resource Budgeting basis. ⁵ Figures from 2003-04 include a technical adjustment for trust depreciation. Notes: 1. Expenditure excludes NHS (AME). 2. GDP deflator 30 June 2009. 3. 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*
		UK public spending on health as a percentage of GDP	UK public spending on health as a percentage of total managed expenditure
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
Sources: Calculated percentages use information on: 1. Health Public Spending—Table 4.2/Table 4.4 HM Treasury PESA 2009 2. ONS data for money GDP (not seasonally adjusted, BKTL) 3. 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 and not England figures as shown in Table 1. This method is use in response to similar questions posed as part of the Health Select Committee’s Public Expenditure Inquiry.

To ask the Secretary of State for Health how much has been (a) agreed to be spent and (b) spent in each primary care trust under the national capitation formula in each year since its inception. (291317)

Revenue allocations under the national capitation formula were first made to primary care trusts (PCTs) in 2003-04. Tables showing the Revenue Resource Limit (RRL) and Net Operating Costs for PCTs for each year between 2003-04 and 2008-09 have been placed in the Library.

The Revenue Resource Limit sets the level of agreed revenue expenditure a PCT can incur in a financial year. The Net Operating Costs represent the net revenue expenditure actually incurred in a financial year.

Revenue allocations made under the national capitation formula constitute the majority of the Revenue Resource Limit, with the balance of that limit comprising central programme allocations and agreed inter-authority transfers.

Volume 496: debated on Wednesday 16 September 2009