Health Service Spending

14. What steps his Department is taking to tackle wasteful spending in the health service.

As well as the record investment that we put into the NHS, we are ensuring that we get a better bang for the taxpayer’s buck. Under the Conservatives, for example, the NHS was paying £3 billion to recruitment firms for agency shifts. We have cut agency spending by a third and are abolishing it altogether, with the savings reinvested in staff pay and treatment for patients. That is just one example of how our reform agenda is good for patients and for taxpayers.

Private finance initiative deals did huge damage to NHS budgets. Despite receiving just £13 billion in assets, NHS trusts were saddled with more than £80 billion in PFI debts—most of that is still being paid back. We have even seen some hospitals spending more on PFI debts than on medicines. If they really want to cut out waste and avoid a PFI-style disaster 2.0, will the Government rule out using private finance for the new network of new NHS clinics, as has been floated?

As I answered in response to my hon. Friend the Member for Blyth and Ashington (Ian Lavery), we will absolutely ensure that we learn the lessons of the last Government’s failure.

Does the Minister agree that it is completely wasteful to make cancer patients who need to go for chemotherapy in Carlisle on a Wednesday but who live in, say, Kirkby Stephen to have to travel to Carlisle on the day or on the day before to get their bloods taken? Why is that? Because the local hospital will no longer fund the local GP surgery in Kirkby Stephen or Appleby to take their bloods there. Is it not wrong that those GP surgeries can no longer provide secondary healthcare blood services in their own settings in people’s own communities?

As he often does, the hon. Gentleman highlights in his own very rural constituency some of the fundamental problems at the heart of our NHS. That is why we are reforming it, ensuring that we move hospital services from hospitals into the community and developing neighbourhood health services. We are also looking at the financial flows in the system that lead to these sorts of perverse incentives and funding arrangements, which do damage to his constituents, as they do to many others and to rural and coastal communities. That is why we highlighted that in the 10-year plan. We need to see the end of such examples.