Rachel Reeves promises new funding for extra two million NHS appointments per year

The budget will deliver billions of pounds of new funding for the NHS to unlock two million extra appointments a year, the government has announced.

Rachel Reeves, the chancellor, is expected to unveil £1.5bn for new surgical hubs and scanners alongside £70m for radiotherapy machines.

An additional £1.8bn will also be put towards elective appointments since July.

Speaking ahead of the budget on Wednesday, Ms Reeves called the NHS “the lifeblood of Britain” and pledged to put an end to the “neglect and underinvestment” it has witnessed over the past decade.

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However, she warned that her budget – which will contain some tax hikes to fill a mooted £40bn black hole in the public finances – would be unlikely to “undo 14 years of damage”.

Speaking to reporters at St George’s Hospital in Tooting, south London, on Monday, Ms Reeves said: “I don’t think in one budget you can undo 14 years of damage.

“But in this budget we’re going to provide the resource necessary to deliver on our manifesto commitment to 40,000 additional appointments every single week, to reduce the huge backlog and as well as the increase in the capital budget to take it to its highest level since 2010 to invest in the new scanners and the radiography equipment.”

On a joint visit with Ms Reeves, Health Secretary Wes Streeting admitted that the extra money might not prevent avoidable deaths and another winter crisis over the coming months.

“I can’t promise that there won’t be people waiting on trolleys and corridors this winter,” he said.

“There are people in that position already today.”

He added: “I can’t pretend that we’re going to be able to wave a Labour magic wand and make all of those problems go away this winter.

“There will still be real problems this winter, but we’re not going to deny the scale of the problems, and we are already supporting system leaders, particularly in places that tend to have the most challenge at winter, to try and minimise the risk this winter.”

The chancellor highlighted the fact staff at the hospital were using equipment purchased under the last Labour government which should have been replaced.

“It hampers their productivity and efficiency and so as well as the money we need to see reform in the health service, but also modern equipment to get the most out of the qualified staff who are using tools that are not appropriate in 2024,” she said.

Sir Keir Starmer confirmed earlier today that there will be tax rises in the budget to prevent what he called a “devastating return to austerity” and to rebuild public services.

The prime minister did not specify what tax rises would be included, but it is widely expected that employer national insurance will go up, alongside possible increases to capital gains and inheritance tax.

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Ministers have been facing repeated questions about the government’s definition of “working people”, after Labour’s election manifesto pledged not to increase taxes on working people – explicitly ruling out a rise in VAT, national insurance, and income tax.

One of the key announcements that will make it into Wednesday’s event is that the £2 bus fare cap will rise to £3, while £240m will be injected into efforts to get people back into work.

The move has been sharply criticised by opponents, with Tory leadership hopeful Robert Jenrick branding it “clueless”.

Meanwhile, a Conservative Party spokesman said: “We delivered record funding, overhauled productivity and delivered the first NHS Long Term Workforce Plan to support the health service recover from the pandemic and respond to a growing and ageing population.

“If Labour are serious about ensuring the NHS delivers for patients, they must continue this reform instead of holding yet further consultations. The Health Secretary promised no more money without reform – but where is it?”