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 Phillipsthat ICBs – which areresponsible for planning local health services – have been tasked with finding 50% savings to boost efficiency.
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.
Image: 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”.
Image: 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.
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”.
Sir Ed Davey has written to King Charles to explain why he believes he has to refuse his invite to a state banquet for Donald Trump.
The Lib Dem leader said on Wednesday he will be boycotting the dinner next month during the US president’s second state visit to the UK because of the situation in Gaza.
He told Sky News on Thursday: “I’ve written to him [the King] personally explaining my thinking.
“And it’s with deep regret that I’ve had to take the decision, but I feel with what is going on in Gaza, it’s the best way I can get my voice heard.”
Sir Ed said the “sad truth” is Mr Trump is the “one man” who has the power to stop the “horrible famine in Gaza, could get the hostages released, could bring an end to this horrendous humanitarian crisis”.
He said the US president could do that by phoning up Israeli Prime Minister Benjamin Netanyahu and telling him to stop.
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The Lib Dem leader said Mr Trump could also call up the Qatari government and other Gulf states to get them to put pressure on Hamas to release the remaining 50 Israeli hostages (20 living, 30 dead) they took on 7 October 2023.
Image: The King and Donald Trump during his first state visit in 2019. Pic: Reuters
He emphasised that he has “huge respect” for the King and it was a very difficult decision he “really wrestled with” and involved him talking to his wife and praying about it.
Sir Ed denied it was political posturing and instead is one of the only ways he could get Mr Trump to listen.
“I didn’t want him to come to the UK without being reminded, as best I can, that he has that moral responsibility, frankly,” he added.
“And from what I’m picking up from many people, there are people across the political spectrum who agree with me and the Democrats that it is Donald Trump, it is the United States who has this power over Netanyahu, over Hamas, albeit indirectly, to stop this horrendous situation.”
Publicly refusing the King’s invite is “the best way I can get my voice heard,” Sir Ed said.
Image: King Charles will host a state dinner for Donald Trump. Pic: PA
Tony Blair at White House Gaza meeting
While Sir Ed is choosing to snub Mr Trump to get his voice heard, former Labour prime minister Sir Tony Blair has been asked by the US president for help on Gaza.
Sir Tony joined a White House meeting on Wednesday, chaired by Mr Trump, to discuss the war in Gaza and post-war plans for the Palestinian territory, a senior White House official confirmed.
They were joined by Mr Trump’s former Middle East envoy and son-in-law, Jared Kushner, to also discuss the hostage crisis and plans to escalate food aid deliveries.
The official described it as “simply a policy meeting”.
In July, the Financial Times reported the Tony Blair Institute had participated in a project to develop a post-war Gaza plan, with the think tank having “had many calls with different groups on post-war reconstruction of Gaza but none included the idea of forcible relocation of people from Gaza”.
Sir Ed called on Sir Tony to be quizzed in parliament about his discussions with the Trump administration.
“If he has special insight into Trump’s intentions, it’s only right that parliament and the government are made privy to this,” he said.
“We must leverage all the information and resources at our disposal to make Trump do the right thing.”
The change is part of the Commodity Futures Trading Commission’s “crypto sprint,” an initiative to overhaul regulations in response to proposals from the Trump administration.