The UK government is facing severe criticism after quietly raiding the NHS's vital modernisation fund to cover the cost of recent public sector pay settlements. According to documents seen by The Independent, ministers have diverted a staggering £1.1 billion from NHS England's capital budget.
This budget is specifically earmarked for long-term investments in new hospitals, new diagnostic equipment, and crucial IT upgrades. The move represents a significant blow to the health service's already strained modernisation plans.
Behind the Scenes: A Budgetary Shell Game
Internal correspondence reveals the Department of Health and Social Care (DHSC) instructed NHS England to surrender these funds. The money was then used to partially fund the increased wage bills resulting from strikes across the public sector, including those by junior doctors and consultants.
This financial manoeuvre effectively means that future healthcare improvements are being sacrificed to settle today's industrial disputes. The transfer was authorised by the Treasury, highlighting the government's struggle to manage its spending commitments.
Experts Sound the Alarm on Long-Term Consequences
Health policy experts and opposition parties have condemned the decision. They warn that robbing the capital budget to pay for day-to-day revenue costs is a disastrously short-sighted strategy.
This practice risks creating a vicious cycle:
- Older, less efficient equipment leads to longer waiting times for scans and procedures.
- Delayed upgrades to outdated IT systems hamper staff productivity and patient data security.
- Critical maintenance on existing hospital estates is postponed, potentially compromising safety.
- The NHS's ability to innovate and increase capacity for future demand is severely weakened.
Shadow health secretary Wes Streeting labelled the move "the height of economic insanity," accusing the government of forcing the NHS to "cannibalise itself" to clean up ministerial mistakes.
A Pattern of Underfunding and Short-Term Fixes
This is not an isolated incident. The NHS's capital budget has frequently been used as a piggy bank to plug holes in its day-to-day running costs, a practice that has drawn consistent criticism from financial watchdogs.
The recent Autumn Statement further compounded the issue by failing to allocate any new funding to cover the higher pay awards, leaving the DHSC with a multi-billion pound black hole and forcing this drastic internal reallocation.
This decision underscores the intense financial pressure facing the NHS and raises serious questions about the government's commitment to its long-term sustainability and modernisation, ultimately putting patient care and future health service resilience at risk.
