Press release: Financial pressures continue in current year
02 Jun 2005
The Scottish NHS Confederation, which represents NHS boards in Scotland, today welcomed the Scottish Parliament Audit Committee's recognition of the financial pressures facing NHS boards and noted that many boards continue to face such pressures in the current year.
The Confederation's Director Hilary Robertson said: "The report rightly recognises that the NHS works well in many areas. Investment in the NHS has risen substantially and real progress is being made to improve services. However, the majority of our members still face the financial pressures stemming from implementing new contracts, redesigning services, EU legislation and prescribing costs as the Committee highlights for 2003/04."
Ms Robertson continued: "NHS boards face competing demands upon their budgets. Pay modernisation is an essential part of improving services and the Confederation's members fully support the development of a first class workforce. But where pay modernisation costs have been underestimated, the result is further financial pressure on boards to fund the shortfall and less money to develop new services. The Committee's recommendation for more robust estimates of the costs of major new initiatives and joint work between NHS boards and the health department on reaching these is a useful one."
Ms Robertson concluded: "The use of non-recurring funding is a concern shared by boards. The NHS clearly recognises its responsibility to obtain the best value for the public money it spends. But it is a fact of life, that no matter how generous the funding for the NHS, it is not unlimited. If the costs associated with providing services have outstripped what is affordable out of boards' annual allocations, it has been non-recurring funding which has allowed boards to balance their budgets without affecting services."
Ends
Notes for editors
1. The Scottish NHS Confederation is an independent membership body representing Scotland's NHS boards and special health boards. We are committed to improving health policy and practice.
Contact details
For further information contact: Donald Crichton on 07775582123
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