NHS: Finance
The question
To ask the Secretary of State for Health and Social Care, what assessment his Department has made of the potential merits of conducting efficiency savings to fund more (a) clinical staff and (b) equipment in the NHS.
Answered by Karin Smyth
NHS England’s 2025/26 priorities and operational planning guidance made it clear that the National Health Service must live within the budget it is allocated, reduce waste and increase productivity to deliver growth against demand. The Autumn Statement 2024 reaffirmed a 2% NHS productivity growth target for 2025/26, and the recent Spending Review set out the commitment to achieve 2% productivity growth across the Spending Review period, supported by up to £10 billion of technology and digital investment.
As part of the 2025/26 planning process, all NHS systems set efficiency and savings targets necessary to achieve a balanced financial position, and planned delivery of the other national priorities set out in planning guidance including recovering elective activity. To help organisations identify savings and plan for 2025/26, NHS England shared core productivity and efficiency metrics with benchmarked opportunities. For a given budget, savings and productivity opportunities can enable the same level of clinical staff to do more activity, or can involve savings to non-clinical areas or reduction in input costs, for example, procurement and agency savings, to enable reinvestment in additional clinical staff or non-capitalised equipment.
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