Budget breakdown: assessing the impact on pensions, GP practices and future pay deals

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By Dr Ed Cantelo

Having warned us about the difficult decisions they would need to take to repair the UK’s public finances and fix the “broken” NHS (and other public services lest we forget), Labour’s first budget raised a record £40 billion in tax revenue while make some large spending commitments.

In this article, we go through how the budget announcements may affect the NHS and doctors.

The good

Chancellor Rachel Reeves announced some large spending commitments. This included a £22.6 billion increase in the sum allocated in 2023/24 for day-to-day health spending and a £3.1 billion increase in the capital budget over this year and next.

This £22.6 billion aims to meet Labour’s manifesto commitment to provide an additional 40,000 elective hospital appointments per week and reduce waiting times.

The £3.1 billion includes £1 billion for repairs and upgrades to equipment and £1.5 billion for new beds in hospital and testing capacity.