An NHS watchdog has warned that more must be done to tackle health inequalities across the country.

In a "State of healthcare" report published on Thursday, the Healthcare Commission published figures showing a range of inequalities based on wealth, race and region.

While the study identified some signs of improvement, it called on the NHS to do more to ensure it served "the whole nation".

Health secretary John Reid said progress is being made "throughout all levels of the NHS".

But the Conservatives said the findings were "shocking".

Sir Ian Kennedy, chairman of the commission, said the NHS was a "highly complex" organisation.

"It must serve the whole nation, not just those who live in certain areas, or those best able to demand healthcare of good quality," he said.

"My concern, and that of the Healthcare Commission, is that those most in need may still be getting the worst deal."

The report found there had been improvements such as a 13 per cent drop in cancer deaths between 1993 and 2001.

But deaths from cancer were 60 per cent higher in deprived areas such as Tower Hamlets in London and in Liverpool.

The commission also warned that some deprived communities were not getting the funds they required.

Easington in County Durham should have received £26.5 million more a year than it did, the report noted.

Bur affluent Westminster in London received £66.3 million more than its target.

"We recognise the government has a system that, by 2010, will move communities away from their historical funding towards the funding that they should receive," said Sir Ian.

"Eventually, more money will go to the communities that most need it.

"However, 2010 is far away and the Healthcare Commission would like to see more money going to those who need it, more urgently.

"We believe this is important if the government is going to achieve its targets for health and healthcare."

Reid's response

Health secretary John Reid said action would be taken to ensure funding was fairly distributed across the NHS.

"I will want to concentrate that redistribution towards those in the greatest need and with the greatest deficit," he said.

Reid accepted that the inequalities were "a continuing scar on a civilised society".

But he added that "progress is being made throughout all levels of the NHS".

"The record levels of investment going into the health service are making a real difference to patients," he said.

"Waiting times have fallen faster and further this year than ever before.

"Death rates from the major killers, cancer and coronary heart disease, are falling quickly.

"However, I know there is more to be done to tackle the health inequalities identified in the report."

Conservative concerns

For the Conservatives, shadow health secretary Andrew Lansley said the report was "truly shocking"

"Labour has failed completely to ensure that resources reach areas with the most healthcare needs," he said.

"It is time that Labour stops wasting time setting targets and does much more to improve the nation's health and help those with chronic conditions who, as a result of their condition, often suffer financially."

And the Liberal Democrats said that the report highlighted the need to tackle the root causes of much ill-health.

"The message of this report is that the biggest factor in improving people's health is not the NHS. It is changing the circumstances in which people live," said health spokesman Paul Burstow.

"Until this government tackles the root causes of ill-health instead of simply trying to treat the symptoms, these appalling inequalities will remain.

"Government targets are getting in the way of improving health for all.

"So much funding is attached to achieving these targets, that little is left over for improving the health of the most deprived communities. The government is hitting targets but missing the point."