What is the truth about NHS spending in East Lancashire?

The official line from the Government is that NHS spending is continuing to rise but we are coming to the point where it will begin to plateau. We are told that cuts in health spending are not on the agenda.

Despite this, the Lancashire Telegraph reported on 28 January 2010 that our local primary care trust, NHS East Lancashire, was looking to make cuts of £46 million. Readers were told that plans for savings were still at an embryonic stage but quoted the finance director, Chris Dixon, warning that there could be “no sacred cows”.

So when is a “cut” not a cut? Clearly, if the upward trajectory of NHS spending is to level off – as it will – it has got to be managed. But blood curdling predictions of pain to come are wide of the mark.

That said, I was sufficiently alarmed by the reported statements coming out of the Primary Care Trust that I quizzed Health Minister, Mike O’Brien, on future health spending in the area.

He began with the usual health warning. “The management of NHS spending is determined at a local level. Services are commissioned by local primary care trusts (PCTs) and management of expenditure is determined locally. All NHS organisations are expected to meet their statutory duty to achieve financial balance.”

He told me: “East Lancashire PCT will receive £629.3 million in 2009-10 and £663.9 million in 2010-11. This reflects an increase over the two years of £67.4 million, 11.3 per cent. in cash terms.”

According to the Lancashire Telegraph, Chris Dixon says the scale of the cuts was the most severe he had experienced within the NHS.

Way over the top, I’d say. Even allowing for the fact that "health inflation" runs above inflation elsewhere in the economy.

Surely it is time for less drama in the NHS. And for sound, sober, forward looking management.