REACTION: Health and social care leaders respond to Autumn Budget 2024
On 30 October 2024, Chancellor of the Exchequer Rachel Reeves presented the Autumn Budget to Parliament.
Some of the headline announcements for the assistive technology sector include an additional £22.6 billion for day-to-day spending over two years for the Department of Health and Social Care, £600 million of new grant funding to support social care, and an £86 million increase to the Disabled Facilities Grant.
Below, AT Today has covered some reactions from leading health and social care organisations, including the British Healthcare Trades Association, Royal College of Occupational Therapists, The King’s Fund, and Association of Directors of Adult Social Services.
Commenting on the chancellor’s announcement to provide more funding for NHS appointments, Policy and Public Affairs Lead at the Royal College of Occupational Therapists, Joseph Brunwin, said: “It’s good news that there will be more funding for NHS appointments and elective services to help reduce waiting lists and improve patient outcomes.
“This is a positive and much-needed investment, but it’s essential that it’s used in the right way. Budgets and staff need to be reallocated to where they can make the most difference.
“For the government to achieve its goals for the NHS, there needs to be much greater investment in community-based care, particularly in occupational therapy, which plays a pivotal role in reducing demand on hospital and elective services.
“Occupational therapists provide vital services in the community, including in GP surgeries, schools, housing teams, social services, care homes and places of work. They help patients manage daily activities, recover from illness or injury, and prevent hospital readmissions. This reduces pressure on wider services and enables people to continue with the occupations they want and have to do.
“There are currently over 9,229 adults and 17,536 children and young people awaiting occupational therapy services. Without additional funding to address this backlog, our community services remain under severe strain, directly impacting individuals’ quality of life and increasing the burden on other NHS services.”
David Stockdale, Chief Executive of the British Healthcare Trades Association (BHTA), highlighted the impact the budget will have on member companies.
He commented: “While we fully welcome additional funding for the NHS and local authorities, we are deeply concerned about the impact of rising costs on the private sector.
“Many of our members are small and medium enterprises, tied to fixed-price contracts with NHS suppliers and local authorities, and rising business costs could make them completely unsustainable.
“Taking on increased National Insurance and the National Minimum Wage will be particularly costly without support. In fact, we are already hearing that without support this could ‘decimate’ vital sectors, like community equipment.
“Tax increases and other escalating business expenses threaten to offset any additional investment being made by the government. The hundreds of SMEs that we represent will bear the brunt if this budget despite the fact that we supply the NHS with the essential tech and products necessary to deliver timely, effective care.
“We stand ready and willing to work with the government to ensure that this investment is not eroded by increased tax burdens on businesses.”
Responding to the Autumn Budget 2024, Siva Anandaciva, Chief Analyst at The King’s Fund, commented: “This Budget has been delivered among a backdrop of dire NHS performance and extremely tight public finances.
“The Chancellor has said that ‘change must be felt’, but the health spending announced today is unlikely to be enough for patients to see a real improvement in the care they receive. The 3.8% real-terms uplift over two years to the Department of Health and Social Care budget will help sustain services but is unlikely to drastically improve care over the rest of this year, and certainly not overnight. That’s because the £22 billion for two years allocated for day-to-day spending will also need to cover existing commitments for new staff pay deals and rising costs of delivering care.
“The increases to capital investment in NHS buildings and equipment announced today will go some way towards reducing the waiting list in coming years, by increasing the number of hospital beds and surgical hubs in the NHS. However, the existing backlog of NHS maintenance issues with buildings and equipment is a staggering £13.8 billion and the extra funding announced today will only be a modest down payment on what is needed to tackle unsafe and outdated NHS facilities.
“The additional £600 million announced for social care will be welcomed by the sector but is substantially less than what has been allocated to the NHS – many social care leaders will look on with envy at the funding their health service colleagues have received.
“Care providers will also have to shoulder extra employer costs from national insurance changes and minimum wage increases, exacerbating the difficult financial position they are in.
“It is positive to see the government using its fiscal and regulatory tools to help improve the nation’s health, including increases to tobacco duties and the soft drinks levy. But the government has chosen to provide little clarity on overall budgets to support public health services.
“On the whole, this budget has been a starting point for the investment and reform that is needed to begin to stabilise the trajectory of NHS performance, but it is not enough for the system to deliver the wholesale shift needed for a health and care system fit for the future. To achieve that, more funding will be needed in next year’s Comprehensive Spending review.”
Reacting to this year’s Autumn Budget, President of ADASS Melanie Williams, said: “The budget has offered some light relief for local government, with new money announced. In particular, we welcome the £600 million of grant funding for social care and improvements in Carer’s Allowance.
“Our last survey showed that councils overspent on adult social care last year by £586mn, therefore it’s vital that Government fully funds the increases in national living wage or it risks escalating financial pressures on adult social care further.
“In reality, the new money announced may end up getting used to cover employers’ national insurance increases and wage increases amongst providers. On this basis, we look forward to further discussions with government on the high demand for adult social care we are facing, and how this relates to the NHS and SEND.
“We welcome conversations about the NHS 10-year plan, neighbourhood health and the NHS settlement to understand how funding will flow through and reach people who need it, helping the government to achieve its strategic shifts in health and social care – from hospital to community, analogue to digital and treatment to prevention.”