Official statistics now portray extra government spending on public services in a more favourable light.

Revised figures published on Thursday by the Office for National Statistics show that "health care output" is increasing at nearly twice the rate previously thought.

They say that year-by-year growth in output rose by 4.1 per cent in 2002 and 2003 instead of by 2.6 per cent in both years.

Tony Blair and John Reid, the health secretary, called for a review of official statistics this year after figures showed that NHS efficiency had fallen since Labour came to power, despite large amounts of extra money being pumped into public services.

Meanwhile the Public Health Laboratory has warned that hospital overcrowding resulting from pressure to meet waiting lists is resulting in the spread of the MRSA superbug.