Health: Medicines

Lord Naseby
asked Her Majesty's Government:

What percentage of total National Health Service expenditure was spent on medicines in the latest year for which data are available; and what was the equivalent percentage 10 years previously. [HL3871]

The Minister of State, Department of Health (Lord Hunt of Kings Heath)
The following table shows total net drugs expenditure and National Health Service revenue expenditure for the years 1995-96 and 2005-06.

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|       |Total net drugs expenditure (£ million)|Total net NHS revenue expenditure (£ million)|Drugs spend as proportion of total NHS revenue expenditure (%)|
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|1995-96|4,379                                  |30,250                                       |14.5                                                          |
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|2005-06|9,979                                  |73,677                                       |13.5                                                          |
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National Health Service expenditure is the total NHS net revenue expenditure. NHS expenditure is on a cash basis pre-1999-2000 inclusive, and a resource basis post-1999-2000. Resource budgeting (RB) was introduced in two stages. Phase 1 (2000-01 to 2002-03) included debtors and creditors and phase 2 (2003-04 onwards) applies full RB.

As a result of these accounting differences, the two years are not strictly comparable.

Notes: Figures are net which include Pharmaceutical Price Regulation Scheme receipt savings.
 

Source: Prescription pricing division of the NHS Business Services Authority, England and department finance division.