Labour accuse Government of 'burying bad news' on NHS

John Healey, the shadow health secretary, raised questions over the timing of an official announcement that hospitals may need to make savings far greater than those already planned.



He said the statement by Monitor, that leading hospitals must make savings of up to 7 per cent a year, proved that the reorganisation of the NHS and cost-cutting plans are putting the system under “huge strain”.

Mr Healey said: “With all eyes on the Royal Wedding, the Government is trying to bury bad news on the NHS.

“This confirms the combination of broken promises on NHS funding and reorganisation is putting a huge strain on hospitals. David Cameron must halt his high-risk, high cost overhaul of the NHS.

“The Prime Minister promised to protect the NHS but his health policies are piling extra pressure on health services, and patients are starting to see the NHS going backwards again under the Tories.”

In plans established under Labour, the NHS must make efficiency savings of 4 per cent of its budget by 2015, totaling £20billion.

Many trusts have already announced job cuts and service reductions, although ministers want them to concentrate on reducing waste.

But Monitor, which oversees the 137 leading hospitals known as Foundation Trusts, has warned them that they may need to make savings of at least 50 per cent more than initially thought.

In a letter published on Thursday, the day before the royal wedding, the regulator said it had revised its figures on the basis of last year’s spending review, current inflation expectations and new NHS operating rules.

A spokesman for Monitor said: “The changes to the economic environment mean all trusts will need to plan accordingly and some savings will be required. However, we should be clear that these assumptions are a reflection of the risks in the external environment; they are not a directive to make cuts.

“It is essential that the quality of patient services does not suffer as a result of cost-cutting measures. Monitor's assessment process includes an assessment of quality governance.”

The Department of Health insisted the NHS is in a “strong financial position” and that the higher savings estimates represented Monitor’s worst-case scenario.

“We are investing an extra £11.5 billion into the NHS by 2014/15. But higher costs and an ageing population mean that the NHS must meet the highest possible financial standards and find savings to reinvest into patient care.

“Monitor's assessment of 6 per cent to 7 per cent is its 'downside case', meaning it is more pessimistic. But it is right that Monitor's assessments are challenging - we want all hospitals to be able to meet Monitor's standards and show that they can provide sustainable, high quality and efficient services for their patients.”