Lanterna Rally

Author: Great Britain: Department of Health

Publisher: The Stationery Office

Published: 2007-02-20

Total Pages: 24

ISBN-13: 9780101702829

This is the Government's response to the Health Committee's report, (HCP 73-I, session 2006-07 - NHS Deficits - ISBN 9780215031747), which highlighted the role of: the funding formula; poor central management; and poor local management in the National Health Service as being the root cause of deficit problems, alongside large inherited debts. The Committee also notes that the reductions in workforce budget and training and education have been the main contribution to reducing deficits, and see that as having adverse effects on staff morale and development, and this could affect the quality of the workforce. The Government accepts that many of the recommendations resonate with the Department of Health's objectives on financial management in the NHS, and accepts that some of areas, as highlighted by the Committee, such as poor local management has contributed to the NHS deficit, also that higher standards in financial management is required, with the Department appointing a Financial Controller, who can challenge the financial performance of individual organisations. The NHS will receive an estimated funding of £84.4 billion in the 2006-07 period, and it is the Government's view this has led to a service transformation and improved patient care. The Government does not accept that ring-fencing budgets and micro-management of the NHS will produce better financial health. The Secretary of State for Health has set out three clear financial objectives, which is reported on a quarterly basis in the NHS finance reports: (i) deliver net financial balance across the NHS; (ii) see improvement in financial performance to all organizations reporting a deficit in 2005-06; (iii) achieve a recurrent monthly rate balance across as many NHS organizations as possible by 31st March 2007. The latest quarterly report is available on the Department of Health website: http://www.dh.gov.uk/assetRoot/04/14/31/57/04143157.pdf. Also for a related publication Explaining NHS Deficits, 2003/04 and 2005/06, see: http://www.dh.gov.uk/assetRoot/04/14/31/58/04143158.pdf.