Revenue, capital, prevention: a new public spending framework for the future

Demos -Public services are in crisis due to overwhelming demand, unreliable quality, and limited access. Short-term fiscal priorities have led to cuts in vital capital spending, including diverting funds meant for investment to cover daily expenses. For example, between 2013/14 and 2019/20 faced with pressures on day- to-day spending, £3.9 billion was transferred from planned capital spending to meeting NHS running costs. In 2017/18, 18 per cent of the NHS’ capital budget was used to cover shortfalls in day- to-day spending. To address this, this paper proposes a new category within Department Expenditure Limits: Preventative Departmental Expenditure Limits (PDEL). This approach aims to bring transparency and a focus on prevention to public spending, breaking the cycle of crisis management.PaperMore detail
Source: The Kings Fund - Health Management Specialist Collection - Category: Health Management Authors: Tags: NHS finance Source Type: news