Government should be ‘honest’ about NHS budget deficit and further job cuts, says health charity

Controversial junior doctors’ contract stipulation of seven-day NHS deemed unaffordable

Health service trusts revealed a £2.45 billion deficit for 2015-16 (AFP/Getty)

The Government has “a responsibility to be honest” about the bleak financial state of the NHS and the likelihood of further cuts to staff, a health charity has said.

A report by The King’s Fund has found the healthcare system to be “buckling under the strain of huge financial and operational pressures”, warning of risks to patient care and deeming the mooted seven-day NHS – a key plank of the controversial new junior doctors’ contract – unaffordable.

The charity warns the finances of local health commissioners have “deteriorated sharply” over the past two years, and suggests this is due to the fact funding has not been kept in line with demand for services.

The report notes: “It is touch and go whether the Department of Health has managed to stay within the budget voted by parliament in 2015/16.

“There are significant opportunities for the NHS to deliver better value care, but these cannot be achieved at the pace or scale needed to deliver £22 billion of efficiency savings by 2020/21.

“There are no easy choices, but the worst of all worlds would be to adopt a mindset that fails to acknowledge the serious state of the NHS in England today.”

The publication comes just weeks after health service trusts revealed a £2.45 billion deficit for 2015-16, a threefold increase from the previous year.

The NHS is set to unveil plans to enforce hospitals to keep to spending limits within the next few days.

The King’s Fund also warned of the added instability caused by the UK’s vote to leave the EU, suggesting a drop in the value of the pound sterling could lead to higher costs and affect recruitment capabilities.

Helen McKenna, a senior policy adviser at the King's Fund and one of the authors of the report, said in a statement: "Politicians need to be honest with the public about what the NHS can offer with the funding allocated to it.

"It is no longer credible to argue that the NHS can continue to meet increasing demand for services, deliver current standards of care and stay within its budget.

"This is widely understood within the NHS and now needs to be debated with the public.

"There are no easy choices, but it would be disastrous to adopt a mindset that fails to acknowledge the serious state of the NHS in England today."

A spokesperson for the Department of Health rejected the concerns, claiming the NHS is "performing well and delivering safer, more compassionate care".

"We know some providers are under financial pressure caused by big rises in demand and our ageing population, but are investing an extra £10bn a year by 2020 to deliver the NHS's own plan for the future."

"High quality care and good financial management go hand in hand and we are determined to make the NHS the safest healthcare system in the world, delivering a 7-day NHS."