Researchers from the Institute for Fiscal Studies (IFS) say the NHS will need an extra £20 billion by 2020 to cope with the rising demand, but the next four years is expected to be the toughest in the past five decades with regards to NHS costs.
The demand for the NHS services is rising consistently while its annual budget is expected to remain around £110 billion until 2015. In order to keep NHS expenses where they are, the government would be obliged to cut other public services by 2.3% each year.
As Britain holds an ageing population, the cost of drugs and other factors are increasing, intensifying the financial strain on the health service.
The think tank report from the IFS, predicts that if the health service’s spending was to keep up with the projected economic growth, the government will have to find an additional £9 billion from welfare cuts, patient charges or taxation.
“The current spending plans that run to March 2015 are tighter for the NHS than any delivered in the last 50 years, and the outlook for spending on public services beyond this suggests that, if it grows at all, NHS spending is not likely to keep pace with the amount that it has been estimated it needs to keep pace with the costs of an ageing population”, said IFS deputy director and report author Carl Emerson.
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