What does NHS funding boost mean for SITS?

The government’s priorities for investment over the next five years are already clearer today, a day ahead of the full Spending Review announcement tomorrow. Following the boost for defence and security spending yesterday (see Defence & National Security: Important role for ICT innovation), Chancellor George Osborne today announced an above-inflation injection of cash for front-line NHS services in England.

NHS England will get an additional £3.8bn of funding next year, a rise of 3.7% on its £101bn front-line budget once inflation is taken into account. By 2020-21, NHS England’s budget is set to be nearly £120bn meaning the government will have kept its manifesto promise to increase front-line NHS spending by c£8bn after inflation. Coupled with the extra £1.8bn that the NHS received this year, it means that the government can claim to have increased spending by over £10bn, with c£6bn front-loaded by the first year of the Spending Review.

TechMarketView subscription service clients can read our analysis of the implications for SITS suppliers in the latest UKHotViewsExtra article: SITS suppliers should give cautious welcome to front-line NHS funding boost.

Posted by Tola Sargeant at '11:13'