Osborne gives in over NHS spending

The health service will receive an extra £6 billion next year as funding is increased to an additional £8 billion a year by 2020.

The Chancellor had already agreed to increase the NHS budget by £8 billion, or £10 billion including this year’s increase, over the next five years.

But NHS chief executive Simon Stevens had asked for more of the extra money to be invested sooner.

The money is designed to pay for a five year plan drawn up by Mr Stevens which also includes a commitment to save £22 billion to be put back into services.

Mr Osborne said: “This will mean world-class treatment for millions more patients, deliver a truly seven-day health service and allow the NHS to implement its five-year plan to transform the services patients receive.”

The agreement to put £6 billion extra into the NHS budget next year represents a victory for Mr Stevens who had argued the money was needed sooner to deliver the changes that will produce savings in the long term.

Mr Stevens said: ““This settlement is a clear and highly welcome acceptance of our argument for frontloaded NHS investment.

“It will help stabilise current pressures on hospitals, GPs, and mental health services, and kick start the NHS Five Year Forward View’s fundamental redesign of care.”

The offer of billions more for the health service will be in stark contrast to the cuts set to be announced in other Government departments tomorrow when Mr Osborne sets out the results of the comprehensive spending review.