Magazine article Public Finance

Nicholson Warns of NHS Cash Crunch

Magazine article Public Finance

Nicholson Warns of NHS Cash Crunch

Article excerpt

Former NHS England chief executive Sir David Nicholson has warned there will be a 'reckoning' within months about the size of the funding gap at the heart of the health service.

Speaking at CIPFA's World Class Performance Symposium in London on March 19, Nicholson said it is almost impossible to have a sensible conversation about the future of healthcare in England. However, he said, there remains a need for reforms as funding is not growing to meet demand.

Following a plan devised in 2008 to respond to likely funding reductions, Nicholson said the health service has been able to drive efficiencies, including taking out £5.5bn from the running costs of the system.

But less than one-third of the savings projected from systemic reform have been achieved, Nicholson highlighted.

'What you can see now in my view, with pressures on the NHS financially, is that it's a failure to be able to deliver service change. …

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