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In continuation of HC no. 742 of session 2006-07
The OHE Compendium of Health Statistics is the one-stop statistical source specially designed for easy use by anyone interested in the UK health care sector and the NHS. It contains over 300 simple easy-to-read tables and charts and provides a wide range of information on UK health and healthcare demography expenditure and major illness in a single volume. It also includes long time series and comparisons with other economically developed nations. The UK data are broken down into England Northern Ireland Scotland and Wales and contain annual figures from as far back as 1949 (the first full year of the NHS). An on-line version of the OHE Compendium is also available. For further information go to www.ohecompendium.org.
This report examines in detail the 2004-05 revenue situation of NHS organisations and considers key financial management and reporting issues facing the NHS both currently and in the future. Jointly prepared by the National Audit Office and the Audit Commission, the report incorporates the findings of their audit work on the NHS summarised accounts, the consolidated account of NHS foundation trusts, the Department of Health's resource account and the accounts of individual NHS organisations, as well as the unaudited NHS revenue out-turn for 2005-06 as reported by the Department of Health and Monitor. Findings include that in 2004-05, the Department reported a deficit across the NHS as a whole for the first time since 1999-2000, with an aggregate overspend for all NHS bodies of £251.2 million, with 171 out of 615 bodies recording a deficit or overspend, with 68 out of 259 NHS trusts failing to break even, and with 90 out of 303 primary care trusts exceeding their revenue resource limits.
In the last financial year the Department of Health made financial recovery priority and managed to turn the deficits of 2005-06 to a surplus of £505 million in 2006-07. The Comptroller and Auditor General is the statutory auditor of the financial accounts of the NHS and has the duty to certify and report to Parliament on them. This report is published alongside in the NHS Summarised Accounts to provide more detail on the financial performance of the NHS, how it moved into balance and the challenges that face it in the future.
NHS Deficits : Sixth report of session 2005-06, Vol. 2: Written Evidence
Spending on the NHS is the fastest growing area of public expenditure, with a budget for 2004-05 of £69.7 billion, rising to £76.4 billion in 2005-06 and £92.6 billion in 2007-08. Despite the increased resources, the NHS reported an overall deficit of £251 million (including Foundation Trusts) in 2004-05, the first time since 1999-2000 that the NHS as a whole had overspent. In 2005-06, the overall deficit increased to £570 million, with a rise in both the number of NHS organisations (Strategic Health Authorities, Primary Care Trusts, NHS Trusts and NHS Foundation Trusts) reporting a deficit and the proportion of those bodies reporting a deficit. Following on from a report (HC 1059-I, session 2005-06; ISBN 9780102938159) published in June 2006, jointly prepared by the National Audit Office and the Audit Commission, the Committee's report examines three main issues: the factors that led to the deficits, the impact on the organisations involved, and the steps taken to recover the deficits. Amongst its findings, the Committee concludes that there are a number of reasons why NHS bodies are in deficit, with most organisations in deficit tending to have had a deficit the previous year. Bodies already in deficit looking to turn their financial position around can be disadvantaged as they are expected to recover that deficit in the next financial period. The NHS has been under significant financial pressure to meet the costs of national pay initiatives which the Department of Health had not fully costed, and as some NHS bodies have coped better than others in managing these cost pressures, this indicates that the standard of financial management expertise varies across the NHS, as does the level of clinical engagement in financial matters.
The Private Finance Initiative (PFI) - the use of private funds to build public sector infrastructure - began in 1992. Since then it has been one of the most contentious policies advocated by both Conservative and Labour governments. After 25 years of costly failure the policy has now been abandoned by Labour and Tory parties. 125 British PFIs are NHS projects, which will cost over £80 billion for buildings built for £12bn. Many PFI companies are now owned offshore, paying no tax on profits, while the extra costs of PFI hang like a millstone dragging down NHS trusts. Unhealthy Profits explores the theory and practice, costs and consequences of PFI, how it has spread world-wide, and what can be done about it. And as a unique case study, it tells the story of the UNISON Branch in Mid Yorkshire Hospitals Trust that has commissioned the book - and fought PFI all the way.