Sally Gainsbury comments on the NAO’s report on Sustainability and Transformation in the NHS

Commenting on the National Audit Office’s report on Sustainability and Transformation in the NHS, Nuffield Trust Senior Policy Analyst Sally Gainsbury said:

“As this report makes clear, the NHS is in a dire financial position. For several years hospital trusts have been grappling with the twin pressures of rising prices and significant cuts to the amount of money they receive per patient [1]. This has meant they are relying increasingly on one-off savings and bailouts to balance the books, leading to a significant underlying deficit – something we have consistently highlighted. [2] 

“This has left hospital trusts with no choice but to spend the money earmarked for reforming services – the Sustainability and Transformation Fund - on dealing with their yawning deficit. But the NHS cannot go on like this. The NAO is absolutely right that we need greater clarity on how large the underlying deficit really is - and their recommendation that this be published annually is very welcome.

“Longer term, this report adds further evidence – if it were needed – that the NHS is in desperate need of more money. Unless politicians can grasp the nettle and put it on a more sustainable footing, hospitals will sink deeper and deeper into the red, adding to the already very concerning situation facing patients and staff alike.”