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Budget 2011: coalition criticised as NHS spending power cut by £1bn

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New inflation forecasts show the NHS in England will suffer a cut of almost £1bn in its spending power by 2015

The coalition is embroiled in a row over its health pledges after it emerged that the budget contained a cut in the NHS's spending power of almost £1bn.

Labour accused ministers of reneging on their repeated promise to increase the NHS's budget in real terms every year throughout this parliament.

Revised upward predictions of inflation in the budget by the Office for Budget Responsibility show that the NHS in England will undergo a cut of £1bn in its spending power by 2015. It also reveals that its budget will be cut in each of the next two financial years, alleged shadow health secretary John Healey.

He was supported by Professor John Appleby, chief economist at the King's Fund, who calculated that the NHS would have £910m less to spend over that period. "It looks like the government won't meet its pledge to give a year-on-year real rise to the NHS each year during this parliament," he said.

The Institute for Fiscal Studies' analysis of the budget also raised questions about the government's commitment, which was set out in the coalition agreement last May and repeated by David Cameron at prime minister's questions last December.

"In terms of the government's pledge to increase NHS spending in real terms year on year, this is now expected to be only barely met between 2010-11 and 2011-12," the IFS said. "The government is meeting its pledge, but is sailing perilously close to the wind."

A Treasury spokesman said: "The government will meet its commitment."

Andrew Lansley, the health secretary, accused Labour of "breathtaking hypocrisy" and using "the NHS as a political football to spread scare stories that do not hold up to scrutiny."

Lansley has already come under fire for ordering a radical shake-up of the NHS despite the coalition's pledge not to initiate yet another top-down reorganisation of the health system. He has also been criticised for going back on a promise to save hospital A&E and maternity units from closure – some of have already closed or are under threat.


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