NHS England criticises PAC report on spending
Stethoscope and coins in a glass jar.

The Public Accounts Committee (PAC) have published a report criticising the NHS’ financial situation, citing problems of overspending, workforce unproductively, and failure to invest in and upgrade the estate as key problems hindering the NHS’ finances, and firmly sets out recommendations for the Department of Health and Social Care.

The NHS has responded to the report, labelling it “flawed.”. An NHS spokesperson said: “The report from the Public Accounts Committee (PAC) contains basic factual inaccuracies and a flawed understanding of how the NHS and the government’s financial processes work.

“While NHS productivity is now improving at double pre-pandemic levels — far from being complacent, NHS England has repeatedly been open about the problem and the actions being take to address it, including in the December public board meeting, and we will be publishing further improvement measures later this week in planning guidance.

“Reform is part of the NHS’ DNA and has ensured performance improvements for patients in the last year, including innovations such as virtual wards — despite the huge challenges the NHS has faced, including capital starvation, unprecedented strikes and a fragile social care sector.

“Lord Darzi’s report was clear many of the solutions can be found in parts of the NHS today, and we are working closely with the government to drive this innovation forward as we develop the ambitious 10 Year Health Plan to build an NHS which is fit for the future.”

NHS England addresses some of the claims made in the PAC report, declaring that it is an organisation “far from complacent about productivity”, and cites several recent board meetings and discussions around productivity. NHS England defends its spending and finances, citing a £1.3 billion increase in mental health spending from 2022-23 to 2023-24.

Although the NHS acknowledges that there is much room for its technological advancements to grow, the organisation cites its NHS app as proof of digital transformation for the public, with 95 per cent of GP surgeries able to access all elements of the app.

NHS England also clarifies that its payment mechanisms can mean that local systems do not receive financial recognition when they prioritise hard-to-reach patients, and lists schemes and initiatives that target deprived populations.