Press release: NHS Confederation responds to NHS quarter three figures

03 Mar 2008

Commenting on the latest Q3 figures, Nigel Edwards, policy director of the NHS Confederation which represents over 95 per cent of NHS organisations said:

"We welcome these figures.  A surplus of £1.8 billion represents just over 2% of the total budget.   Other sectors of government such as local government factor maintain surpluses as do large private sector firms so it is not unreasonable to expect the NHS to do the same.

"Turning finances around is what NHS organisations have been told to do by the Department of Health and that this should be the norm across the service.  Complete financial balance is not the ideal and these figures represent the success of NHS organisations in building up planned surpluses.

"Acting from a secure financial base allows NHS organisations to plan effectively for the long term so that resources can be used most effectively while ensuring that they can deal with contingencies such as a major flu pandemic."
 

ENDS

Notes for editors

Notes for Editors

1. The NHS Confederation represents more than 95% of the organisations that make up the NHS. Its members include the majority of NHS acute trusts, ambulance trusts, foundation trusts, mental health trusts, primary care trusts, special health authorities and strategic health authorities in England; trusts and local health boards in Wales; and health and social service trusts and boards in Northern Ireland.

2. Contact Niall Smith 020 7074 3304 or 07767 770309, Ruth Kennedy 020 7074 3312 or 07884 47 3086, or Ruby Casey-Knight 020 7074 3306 or 07881 957305.  For out of hours media enquiries, please call the Duty Press Officer on 07880 500726.

3. Figures for levels of expenditure in local government are as follows:

Source: department of communities and local government (DCLG) local government key facts document

Level of revenue reserves (excluding pensions)                                                              
                                                                                                                        £million

At 1 April        Schools          Other earmarked       Unallocated                Total
                        reserves         reserves                     reserves                     reserves
                                                                       
1996               593                 3172                           2328                           6093
1997               538                 3354                           2254                           6146
1998               499                 3336                           2011                           5846
1999               539                 3799                           2064                           6402
2000               694                 3895                           1863                           6452
2001               1007               4047                           1755                           6809
2002               1103               3732                           1756                           6592
2003               1132               4198                           2224                           7554
2004               1315               5484                           2678                           9477
2005               1498               6831                           2774                           11103
2006               1596               8095                           2913                           12604
At 31 March                                                              
2007               1746               8500                           3105                           13352

                                    Total                            % of net current         % revenue
                                    reserves (£m)            expenditure                expenditure

2003-04                     £7,554                        9.29%                         9.57%
2004-05                     £9,477                        10.31%                       11.31%
2005-06                     £11,103                      11.43%                       12.47%
2006-07                     £12,604                      12.22%                       13.41%
2007-08                     £13,352                      12.56%                       13.72%

                                    Unallocated                % of net current         % revenue
                                    reserves (£m)            expenditure                expenditure

2003-04                     £2,224                        2.73%                         2.82%
2004-05                     £2,678                        2.91%                         3.20%
2005-06                     £2,774                        2.86%                         3.12%
2006-07                     £2,913                        2.82%                         3.10%
2007-08                     £3,105                        2.92%                         3.19%

                                    Earmarked                 % of net current         % revenue
                                    reserves (£m)            expenditure                expenditure

2003-04                     £4,198                        5.16%                         5.32%
2004-05                     £5,484                        5.97%                         6.54%
2005-06                     £6,831                        7.03%                         7.67%
2006-07                     £8,095                        7.85%                         8.61%
2007-08                     £8,500                        7.99%                         8.73%

 

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