The NHS Operating Framework for England 2010-11, published in December 2009, advised primary care trust (PCTs) to allow for flat real revenue allocations growth for the years 2011-12 and 2012-13. The national health service was also to expect the full deployment during the years of 2010-11, 2011-12 and 2013-14 of any surplus generated by the PCT and strategic health authority (SHA) sector in 2009-10. Alongside this SHAs were to ensure that all PCTs in their region did not recurrently commit the totality of their recurred funding, such that at least 2 per cent. of recurrent funding was only committed non-recurrently by 2013-14.
In addition the Operating Framework stated that the uplift in tariff for 2011-12, 2012-13 and 2013-14 will be set at a maximum of 0 per cent.
It also confirmed that the NHS needs to identify £15 billion to £20 billion of efficiency savings by the end of 2013-14 and specifically set an aggregate target reduction of 30 per cent. in management and agency costs by 2013-14 for each SHA.
These savings will remain with the NHS, enabling it to continue to deliver service improvements. There will be no cuts to NHS front line spending.
As an interim step, “NHS 2010-15 From Good to Great”, published in December 2009, set an interim challenge of £10 billion efficiency savings by 2012-13.