Trust leaders will be concerned about NHS budget being cut

24 March 2022

Responding to reports that the NHS has been asked to make cuts of approximately £500m because of the government's Living with COVID-19 plan, the deputy chief executive of NHS Providers, Saffron Cordery said:

"The chancellor once promised the NHS would get 'whatever it needs' to deal with COVID-19 but that's a far cry from where we are now, with the NHS is being left to pick up the bill against a backdrop of rising COVID-19 cases and hospital admissions.

"Trust leaders will be understandably concerned following today's NHS England board meeting disclosure that the core NHS budget will be cut by approximately £500m to meet the ongoing, and significant costs of living with COVID-19, including the testing regime.

"The current funding settlement intends to help the NHS to deal with care backlogs, continuing COVID-19 pressures and the additional costs arising from major workforce shortages.

"However, inflationary pressures mean the cash settlements agreed at the Spending Review are worth less in real terms, and rising energy and fuel costs will make trusts' savings requirement even more stretching.

"A cut as substantial as £500m creates a very real risk of trade-offs, which could affect trusts' ability to increase activity and improve the quality of patient care – something no one wants to see.

"Trust leaders will be looking for clarity as soon as possible about where the cuts to planned spending will be made."