Hospitals: Securing cash investment

The health secretary has pledged to increase the speed of investment in healthcare with the announcement of cash allocations for NHS primary care trusts.

John Reid told the Commons that England's 303 PCTs were set to see their budgets grow "faster than ever in the history of our National Health Service".

All trusts can expect a minimum of 16.8 per cent increase between 2006 and 2008.

Overall spending would grow by 9.2 per cent in 2006/07 and 9.4 per cent in 2007/08, MPs were told.

Spending would rise to £64 billion in the first year - with the total reaching £70 billion by 2009.

The allocations would be "based on need and fairness", Reid said.

No trust in England will receive an average increase of less than 8.1 per cent each year for the period in question, Reid announced.

PCTs will also have on average 19.5 per cent more resources by 2008 than in 2006, the health secretary said.

"I am allocating more resources to the NHS frontline than ever before," he said.

"This government believes in the National Health Service... that there should be equity of access free at the point of delivery for everyone."

Reid said the funds would put NHS trusts on a stable footing. "They will now be able to plan for the immediate term," he added.

He also announced that the speed of reform would be stepped up over the next three years and that new targets would be set for waiting times.

Election

Shadow health secretary Andrew Lansley accused the government of forming "spearhead NHS trusts" in Labour marginals.

"Surprise, surprise, there is an election coming," he added.

The Lib Dems welcomed the funding, but accused the health secretary of centralising control of spending.

"This extra funding for the NHS is extremely welcome. But it is essential that this money is spent wisely," said spokesman Paul Burstow.

"This government's central command and control approach will not provide value for money.

"The government has had eight years to cut the hidden waiting times for scans and tests.

"By setting eye-catching, rigid targets for treatment waiting times.

"Ministers have been content to let people suffer on hidden waiting lists."