The Spending Review sets departmental budgets for 2026/27 to 2028/29, building on the framework laid out in the Spring Budget. The Department of Health and Social Care (DHSC) will see a 2.8% average annual real-terms increase, primarily in revenue spending, while capital budgets remain largely unchanged.
Major Health Announcements:
- Digital Transformation: Up to £10 billion for NHS technology by 2028/29, supporting a single patient record, NHS App expansion, and the Federated Data Platform.
- Workforce Investment: Funding to train more GPs (exact amount not specified) and hire 8,500 new mental health staff.
- Mental Health in Schools: Mental health support teams to be rolled out to all schools in England by 2029/30.
- Dental Care: Funding for 700,000 additional urgent NHS dental appointments annually.
Context and Challenges:
- The 2.8% increase is generous compared to other departments but falls short of the historic 3.6% growth and the 4% target recommended by the Health Foundation.
- Capital investment remains a concern, with NHS leaders calling for more funding to address infrastructure needs. NHS England plans to introduce off-balance-sheet capital investment models, which are welcomed.
- Operational clarity is needed, especially around redundancy costs for Integrated Care Boards (ICBs) to meet savings targets in 2025/26.
- Broader investments in social determinants of health include:
- £3.5 billion for employment support
- £39 billion for affordable housing
- £1.2 billion for skills development