This item was published during the term of a previous administration that ended in April 2007
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Deacon announces introduction of fairer funding for the NHS in Scotland
21/09/2000
Health Minister Susan Deacon today announced plans for the introduction of a new funding formula for the NHS in Scotland. She also announced details of spending allocations to Scotland's Health Boards for next year.
On average, Health Boards will receive a 6.5 per cent cash increase - more than twice the rate of inflation.
Two weeks ago, Sir John Arbuthnott's final report - "Fair Shares For All" - on the fairer distribution of resources to the Health Service in Scotland was published. The Health Minister today announced that £12 million extra will be allocated to Health Boards in the current financial year to kick start the implementation of the new funding formula.
In a statement to Parliament Ms Deacon said:
"A crucial part of our programme for modernising the NHS - which is based on investment and reform - is to make sure that resources go where they are needed.
"Unlike the Conservative Governments of the eighties and nineties, we recognise the link between poverty and ill-health - and we are acting on it. All the people of Scotland should have access to high quality, modern health services. That access should be equitable and those services should meet local needs.
"I am determined to ensure that resources are allocated fairly to meet those needs. That is why the Arbuthnott Report is so important. It is a fairer, better way of distributing the NHS's huge budget in line with need.
"The Report's recommendations are quite clear that the shares of the resources that go to different Health Boards must change to reflect better their relative needs. In particular, a larger share of resources needs to go to areas suffering high levels of deprivation such as Greater Glasgow and those which have to meet additional costs because of their remoteness, such as the Highlands.
"I will implement these recommendations as quickly as is prudent. At the same time, I will fulfil my commitment given last year that every health board will continue to receive every year real terms growth in their budget. I aim to have all Health Boards at their Arbuthnott share within 5 or 6 years.
"I am pleased to announce today that £12 million extra will be allocated to Health Boards in the current financial year to kick start the process. £6 million of this money will be distributed to every Health Board in line with their fair share in the Arbuthnott report. The other £6 million will be distributed to those Health Boards that the Arbuthnott report indicates need a larger share than they have at present.
"Jack McConnell announced yesterday that there would be more than £400 million extra cash available for health spending in Scotland next year compared with this. I can therefore also announce today that the general hospital and community health and prescribing allocations for next year will mean every Health Board getting at least a 5.5 per cent cash increase - more than twice the rate of inflation.
"On average, Health Boards will receive 6.5 per cent; and Health Boards which, according to the Arbuthnott review, will require a larger share will get significantly more. For example Greater Glasgow will get 7.7 per cent giving it a hospital, community health and prescribing budget of £846m.
"These are substantial real increases which enable every health board to invest more and will allow every Health Board to invest more and will allow every part of Scotland to benefit with improved health services.
"I believe that, with my announcement today beginning the implementation of the Arbuthnott Review, we put in place one of the foundation stones for the Scottish NHS of the 21 st Century. It is a distinctive Scottish solution to meet distinctive Scottish needs"
BACKGROUND
1. The Minister will shortly announce details of arrangements to keep the formula under review; will recommend any essential changes; and will undertake a major updating of the data underpinning the formula every 5 years.
2. The allocations announced today form a large part of the health budget. The sum covered by the formula based allocation represents more than £4.4 billion of a total cash health budget next year of £5.8 billion.
3. Further details of health spending plans will be announced when the Scottish Health Plan is published later this year.
News Release: SE2516/2000
21 Sep 2000