Health uses £137 out of £720 million and this is without the £31 million on Social Services. Taken individually Health uses 19.02% and with Social Services 23.33% of GDP. The total budget shortfall for 2013 is projected at £108 million. Even in 2017/18 we will be borrowing 2.2% and the cumulative deficit for the next 5 years is 22.3% of one year’s GDP.
You may have heard that health budget is “ring fenced”. Be aware that this means health expenditure will reduce in real terms as health inflation costs are well above normal inflation. We are in for some VERY hard times in the heath service unless we ration overtly. Indeed, the demographic changes suggest that those who do best will be those who know how best to game the Post Code Lottery.