A recent report from the Office for Budget Responsibility (OBR) revealed that the NHS will need to increase its budget by £88 billion over the next 50 years.
According to the OBR’s projections, the NHS budget will need to rise by 2% each year over the next 50 years if it is to keep pace with the rising demand for healthcare. According to the OBR’s fiscal sustainability report, the soaring costs of healthcare threaten to render public finances “unsustainable.”
Richard Murray, the Director of Policy at the King’s Fund, said: “The OBR’s acceptance of the need for a larger long-term increase in the proportion of GDP we spend on health is a welcome dose of realism, but also highlights the current pressures on the NHS.”
However, Professor John Appleby, the Chief Economist at the Nuffield Trust said that, whilst the £88 billion rise projected by the OBR sounds huge, “we shouldn’t get too carried away.” He said: “In reality, the increase in health spending it projects would be very gradual – at today’s GDP this would be an increase of less than 2% of the NHS budget each year.”