Now the dust is settling, it’s an opportune moment to delve into what this Spending Review means for the future of the healthcare sector, and what the implications are for those working in it. 

One thing was clear on the day: the big winner in terms of funding was healthcare. Whilst other departments, such as the Department for Transport, the Home Office and DEFRA are due to see their total budgets decrease between now and 2028/29, the NHS will see its spending rise by an average of 3% per year. DHSC’s overall spending is set to grow by 2.8% per year. This means that the NHS will receive an extra £29 billion a year – an enormous sum by any measure.  

Yet the reality is that a significant quantity of this additional funding will not be available for Ministers to commit however they see fit. A significant amount will be spent addressing numerous issues on the Department for Health and Social Care’s (DHSC) radar such as pay increases for staff and potentially higher prices for branded medicines due to ongoing discussions between the government and industry. Whilst these issues are of course important and need to be addressed, this means that not all of the funding awarded in the Spending Review will go towards cutting waiting times, modernising services, or addressing the myriads of other issues that healthcare providers have been raising concerns over in recent years. 

This is where the MDU comes in. As we made clear in our response to the Spring Statement, whilst we welcome the additional funding, we also believe that reforms can go a long way to freeing up significant sums of money. This can then be reinvested elsewhere within the healthcare sector, allowing more financial freedom for ministers to address the major challenges facing the NHS.  

A prime example of this is clinical negligence. This issue cost the NHS £2.8 billion in 2023/24 alone – with the figure expected to rise to over £4 billion a year by the end of the decade. At the MDU, we believe that anyone who has been harmed as a result of negligence should rightfully receive fair compensation. However, this figure is rising significantly, despite DHSC’s figures indicating no decline in clinical safety. We must acknowledge that there is a problem with the current system, and the MDU is at the forefront of calls to address this. 

We have long campaigned for reforms such as a fixed recoverable cost system for lower value claims – which would save £454 million over 10 years, according to DHSC’s own calculations.

We are pleased to say that our work is beginning to deliver results. We have held numerous meetings in recent months to discuss this issue with parliamentarians, helping to raise it up the agenda and ensure that it is never too far from the government’s mind. In recent responses to questions, Ministers have stated that they have concerns about the legal fees involved in such cases, and that this must be addressed.  

The funding announced in the Spending Review is to be welcomed, as it will no doubt help to address both the immediate and longer-term challenges facing the NHS. However, this does not mean we should overlook how funding, both present and future, is being spent. Where reform can lead to a better use of resources, it should be embraced. The MDU will continue to make this case, as we believe this will be better for both patients and staff.