28 November 2001 Number 13

 

Subject

 

Chancellors Pre-Budget Statement

 

Background

 

In his Pre-Budget Report, Chancellor of the ExchequerGordon Brown announced additional spending for the NHS and drew attention to areport by Derek Wanless, the former head of NatWest Bank, which examinedmedical trends over the next 20 years and the likely funding and otherrequirements for the NHS. Quoting fromthe report, Mr Brown said: There is no evidence that any alternative financingmethod would deliver a given quality of healthcare at a lower cost to theeconomy. Indeed other systems seem likelyto prove more costly. The presentmethod by which healthcare is financed through general taxation is fair andefficient and continuation of such a system would not lead to additionalresource pressures over the next two decades. The alternatives includedprivate insurance.

 

BUPAs position

 

BUPA welcomes the Governments decision to increase NHSspending. We accept that tax is anefficient and fair way of collecting core funds for the NHS, but moreconsideration needs to be given to the role that voluntary funding can play tosupplement and complement the NHS. Judicioususe of voluntary funding puts more money in the system, creates a better systemfor everyone, reduces pressures on the whole system and provides a measure ofchoice to patients. The differencebetween the level of spending on health in this country and the rest of Europeis, in the main, accounted for by private funds. Private medical insurance already makes a significantcontribution here. People paying fortheir own treatment, either directly or through insurance, probably saves theNHS 1 billion. We welcome theopportunity to contribute to the Treasury consultation on Mr Wanlesswork. His study will help inform debateabout the nature and extent of future health funding pressures in the UK. Ultimately, whats most important toeveryone in the UK is access to the best possible healthcare for themselves andtheir families.

 

Furtherinformation: Mark Bassett, Head of Public Policy, 020 7656 2491