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Wes Streeting said the NHS is “addicted to overspending”, as he confirmed he is seeking cuts within Integrated Care Boards (ICBs).

The health secretary told Sky’s Sunday Morning with Trevor Phillips that ICBs – which are responsible for planning local health services – have been tasked with finding 50% savings to boost efficiency.

Politics latest: Streeting denies Labour ‘changing into Tories’

It’s part of the government’s plans to slash bureaucracy in the health service – which Mr Streeting acknowledged on Sunday would cause anxiety among administrators facing job losses.

Keir Starmer and Wes Streeting  visits a healthcare provider in Surrey.
Pic: Reuters
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Sir Keir Starmer and Wes Streeting visit a healthcare provider in Surrey. Pic: Reuters

He said he was “genuinely sorry” for people worried about the future, but efficiency savings would divert money to the frontline of the NHS.

Confirming that Jim Mackey, head of the soon-to-be abolished NHS England, had written to ICBs asking them to halve their running costs, Mr Streeting said: “Financial plans to us would have involved an overspend between £5bn and £6bn before the new financial year is even begun.

“And I’m afraid this speaks to the culture that I identified before the general election, where the NHS is addicted to overspending, is addicted to running operating deficits with the assumption that someone will come along to bail them out, which local councils would never be able to do.”

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Reports of the cuts have sparked concerns among health leaders.

Matthew Taylor, head of the NHS Confederation, said it will require “major changes” and make the task of delivering “long term transformation of the NHS much harder”.

An NHS hospital ward. File pic: PA
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An NHS hospital ward. File pic: PA

Mr Streeting denied the cut was effectively a form of austerity, saying the government is going after a culture of “waste and inefficiency” which “isn’t just frustrating patients and taxpayers” but staff working for the NHS too.

“They can see layer upon layer upon layer of bureaucracy and accountability,” he said.

“That’s not the fault of the people working in the system. They are also victims of it.

“And that’s why we’re going hard at achieving those savings in order to redeploy money into frontline services, which benefit patients.”

The government also announced this week it would be scrapping NHS England, the world’s biggest quango, saying there is too much duplication with the work that the Department of Health and Social Care (DHSC) does.

Scrapping NHS England ‘beginning not the end’

Mr Streeting has since indicated he will look to scrap other health-related bodies, writing in The Sunday Telegraph that axing NHS England is “the beginning, not the end”.

Asked what other organisations could be for the chopping board, Mr Streeting said he did not want to “get ahead” of a review by Dr Penny Dash into the operational effectiveness of NHS regulators.

“What I will do is look at how we can reduce the number of regulators, reduce the number of regulations wherever possible… and try to reduce the amount of money we are spending,” he said.

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The cabinet minister defended the language being used to describe the plans, after he described the NHS as being “bloated” by bureaucracy and Prime Minister Sir Keir Starmer called it “flabby”.

Streeting ‘genuinely sorry’ about job losses

Mr Streeting stressed he was “talking about the system, not the people who work in it” – adding that he was “genuinely sorry” about the job losses that will come down the line.

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Conservatives: Scrapping NHS England is ‘right thing’

The government has not yet said how many jobs it expects to axe under the reforms.

Mr Streeting acknowledged lots of people will be anxious about their futures, adding: “I’m genuinely sorry about that, because I don’t want them to be in that position. But I’ve got to make the changes.”

The government’s plans have generally received support from opposition parties, though there have been calls for more details.

Shadow education secretary Laura Trott said reorganisation reforms introduced by the Tories in 2013 were “well-intentioned but didn’t work” and she agrees “in principle” with what Labour has put forward.

However she said the changes aren’t a “silver bullet” and could result in further costs and disruption so “we’ll need to see a very clear plan from the government for how that won’t affect waiting lists further”.

Meanwhile, the Liberal Democrats said the government must “take the same sense of urgency shown here to social care, and complete their review by the end of the year rather than continuing to kick the can down the road”.

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China Merchants Bank tokenizes .8B fund on BNB Chain in Hong Kong

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CMBI’s tokenization initiative with BNB Chain builds on its previous work with Singapore-based DigiFT, which tokenized its fund on Solana in August.

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Chancellor admits tax rises and spending cuts considered for budget

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Chancellor admits tax rises and spending cuts considered for budget

Rachel Reeves has told Sky News she is looking at both tax rises and spending cuts in the budget, in her first interview since being briefed on the scale of the fiscal black hole she faces.

“Of course, we’re looking at tax and spending as well,” the chancellor said when asked how she would deal with the country’s economic challenges in her 26 November statement.

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Ms Reeves was shown the first draft of the Office for Budget Responsibility’s (OBR) report, revealing the size of the black hole she must fill next month, on Friday 3 October.

She has never previously publicly confirmed tax rises are on the cards in the budget, going out of her way to avoid mentioning tax in interviews two weeks ago.

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Chancellor pledges not to raise VAT

Cabinet ministers had previously indicated they did not expect future spending cuts would be used to ensure the chancellor met her fiscal rules.

Ms Reeves also responded to questions about whether the economy was in a “doom loop” of annual tax rises to fill annual black holes. She appeared to concede she is trapped in such a loop.

Asked if she could promise she won’t allow the economy to get stuck in a doom loop cycle, Ms Reeves replied: “Nobody wants that cycle to end more than I do.”

She said that is why she is trying to grow the economy, and only when pushed a third time did she suggest she “would not use those (doom loop) words” because the UK had the strongest growing economy in the G7 in the first half of this year.

What’s facing Reeves?

Ms Reeves is expected to have to find up to £30bn at the budget to balance the books, after a U-turn on winter fuel and welfare reforms and a big productivity downgrade by the OBR, which means Britain is expected to earn less in future than previously predicted.

Yesterday, the IMF upgraded UK growth projections by 0.1 percentage points to 1.3% of GDP this year – but also trimmed its forecast by 0.1% next year, also putting it at 1.3%.

The UK growth prospects are 0.4 percentage points worse off than the IMF’s projects last autumn. The 1.3% GDP growth would be the second-fastest in the G7, behind the US.

Last night, the chancellor arrived in Washington for the annual IMF and World Bank conference.

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The big issues facing the UK economy

‘I won’t duck challenges’

In her Sky News interview, Ms Reeves said multiple challenges meant there was a fresh need to balance the books.

“I was really clear during the general election campaign – and we discussed this many times – that I would always make sure the numbers add up,” she said.

“Challenges are being thrown our way – whether that is the geopolitical uncertainties, the conflicts around the world, the increased tariffs and barriers to trade. And now this (OBR) review is looking at how productive our economy has been in the past and then projecting that forward.”

She was clear that relaxing the fiscal rules (the main one being that from 2029-30, the government’s day-to-day spending needs to rely on taxation alone, not borrowing) was not an option, making tax rises all but inevitable.

“I won’t duck those challenges,” she said.

“Of course, we’re looking at tax and spending as well, but the numbers will always add up with me as chancellor because we saw just three years ago what happens when a government, where the Conservatives, lost control of the public finances: inflation and interest rates went through the roof.”

Pic: PA
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Pic: PA

Blame it on the B word?

Ms Reeves also lay responsibility for the scale of the black hole she’s facing at Brexit, along with austerity and the mini-budget.

This could risk a confrontation with the party’s own voters – one in five (19%) Leave voters backed Labour at the last election, playing a big role in assuring the party’s landslide victory.

The chancellor said: “Austerity, Brexit, and the ongoing impact of Liz Truss’s mini-budget, all of those things have weighed heavily on the UK economy.

“Already, people thought that the UK economy would be 4% smaller because of Brexit.

“Now, of course, we are undoing some of that damage by the deal that we did with the EU earlier this year on food and farming, goods moving between us and the continent, on energy and electricity trading, on an ambitious youth mobility scheme, but there is no doubting that the impact of Brexit is severe and long-lasting.”

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Crypto maturity demands systematic discipline over speculation

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Unlimited leverage and sentiment-driven valuations create cascading liquidations that wipe billions overnight. Crypto’s maturity demands systematic discipline.

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