The Scottish Government

This item was published during the term of a previous administration that ended in April 2007

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NHS budget allocations

01/02/2007

Funding for NHS Boards will go up by over six per cent next year as NHS Scotland's annual budget reaches more than £10 billion, it was announced today.

The allocations will see Scotland's 14 area health Boards and eight special NHS Boards receive around £7.8 billion in 2007-08.

The figures mean the overall health budget for next year is more than double the amount spent on health in 1999.

Health Minister Andy Kerr said:

"Today's announcement highlights the unprecedented levels of investment we are making in improving Scotland's health. Next year we'll be spending over £2,000 per head on health, compared to less than £1,000 in 1999.

"Of course, investing the money is one thing - but we're also making sure it's bringing real benefits to patients. For example, in 2005-06 NHS Scotland performed over 70 per cent more knee-joint replacement operations than in 1998-99. Over the same period, the number of angioplasties undertaken has increased by 151 per cent.

"These trends are set to continue. The growing investment in our NHS is leading to a quicker service, and shorter waits for treatment. We've also seen significant reductions in deaths from our biggest killers, cancer, heart disease and stroke, and record numbers of staff. Now we want to go even further.

"We're already on track to meet even lower waiting times targets. Tough new targets on diagnostics and A&E waits are also being introduced. All at a time of fundamental change in the way we deliver healthcare.

"We're no longer waiting for people to get ill, then rushing them to hospital for urgent treatment. Instead, we're doing more than ever before to encourage people to lead healthy lives, and spotting and dealing with poor health before it can develop into something more serious. When people do need treatment, we're delivering more of it closer to home in their local communities.

"Today's announcement of allocations significantly above the rate of inflation to NHS Boards across the country will allow them to take that work forward. I firmly believe it will mean significant long term benefits to the health of our nation."

Background

• The revenue allocations for area Boards announced today are calculated using the Arbuthnott formula. The formula takes account of the population in the NHS Board area, the age of the population, gender, level of deprivation and the proportion of population living in remote and rural areas. NHS Boards receive funding based on their need using the Arbuthnott formula
• In 2007-08 Total Health per capita in Scotland will be £2,019. This compares to £974 in 1999-00, and £1,867 in 2006-07. In England the comparable figure for next year is £1,839
• NHS territorial Boards have been given a general allocation of £6,870.4 million for 2007-08, an average increase over the equivalent 2006-07 allocation of 6.44 per cent. All have received a standard increase of 6 per cent, with those boards currently below their Arbuthnott formula target allocation receiving more. A breakdown of each NHS board's allocation is as follows:

Allocations to Special Health Boards for 2007-08 are as follows:

The total health budget for 2007-08 is £10.26billion, including £7.79billion for territorial and special health boards plus another £2.28billion to be distributed to other areas such as Capital spending, IT and Primary Medical Services. Another £188million will go on Health Improvement and other health services.

Last year saw significant increases in productivity. NHS Scotland carried out nearly 6,500 hip replacements (up 13 per cent year on year); 5,525 knee replacements (up 19 per cent year on year); 5,500 angioplasty heart operations (up 21 per cent year on year); over 29,000 cataract operations (inpatient and outpatient, up 14 per cent year on year); saw 4.5 million outpatients attendances; 1.4 million new A&E attendances; over half a million attendances at nurse-led clinics; issued 77.3 million prescriptions; carried out 775,000 inpatient and day case principle operations.